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Rules of Practice 1994 (S.R. 1994, No. 229)
|Requested: 28 Jun 2017|
|Consolidated as at: 17 Mar 2006|
63. Second mortgage
(1) A second mortgage is a mortgage
(a) that, if deferred, is deferred only to a first mortgage; and
(b) under which the amount secured, together with all money secured under any first mortgage, does not exceed
(i) 80% of the security valuation if the mortgage is not insured; or
(ii) 95% of the security valuation if the mortgage is insured in respect of so much of the amount advanced as exceeds 80% of the security valuation; or
(iii) 70% of the government valuation in force at the date of the mortgage if there is no security valuation.
(2) If the amount secured under a second mortgage does not exceed the limits specified in subrule (1)(b), a second mortgage includes
(a) a mortgage that has priority over any other encumbrance and over any charge, other than a statutory charge, under which the amount secured exceeds the proper valuation limits for a first mortgage; and
(b) a further mortgage or further charge between the same parties in relation to the same estate if no other creditor of the mortgagor who is deferred in priority to that second mortgage has priority over the claims under the further mortgage or charge by reason of any other encumbrance or any charge that is not a statutory charge.