The registered proprietor told the second lender that

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Unformatted text preview: nd under the Torrens system executed a Memorandum of Mortgage in favour of the bank and deposited the duplicate Certificate of Title with the bank. The bank didn’t register the mortgage. Instead it decided to rely on the receipt of the Memorandum of Mortgage and the duplicate Certificate of Title. Money was subsequently lent to the registered proprietor by another lender and the registered proprietor executed a second Memorandum of Mortgage over the same land. The registered proprietor told the second lender that the Certificate of Title was lodged with the bank for safe keeping only. The second lender did not require production of the duplicate Certificate of Title. The second lender lodged a caveat on the title and some time later the bank lodged the first Memorandum of Mortgage for registration together with the duplicate Certificate of Title. The second lender sought a declaration from the court that the second mortgage had priority over the first mortgage because it had lodged a caveat...
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This document was uploaded on 04/23/2012.

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