Victorian Consolidated Legislation

Instruments Act 1958 - SECT 76

Future mortgages unless registered to be invalid as against purchaser for valuable consideration

76. Future mortgages unless registered to be invalid as against purchaser for
valuable consideration

A mortgage of stock shall not, unless registered in accordance with the
provisions of this Part within thirty days after the date thereof, be of any
validity as against any purchaser bona fide and for valuable consideration and
whether so registered or not shall not be of any validity as against any
subsequent mortgagee or lienee whose mortgage or lien is duly registered under
this Part within thirty days after the date thereof and before the
registration of such first-mentioned mortgage, except in the case of fraud,
and except in the case of fraud the priority of all instruments duly
registered under this Part shall be determined by order of registration and
not of date, and shall not be affected by notice actual or constructive of any
unregistered mortgage or lien, or of any contract therefor, and the knowledge
that any such mortgage lien or contract is in existence shall not of itself be
imputed as fraud, and every second or subsequent mortgage of stock shall, if
duly registered in accordance with the provisions of this Part within thirty
days after the date thereof, become upon such registration and upon
satisfaction of all prior mortgages registered in accordance with this Part or
with any law relating to such mortgages heretofore in force a first mortgage,
so as to vest the legal ownership of the stock comprised therein in such
second or subsequent mortgagee.