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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
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This document was uploaded on 04/23/2012.
- Three '12