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Land – Charge. The claimant bank had a registered charged over the first defendant's property. The second defendant claimed to have leased the property with an unregistered option to buy it from the first defendant. The bank sought declarations concerning the priority of its legal charge over the property. The Chancery Division held that the bank was entitled to the declarations sought where, at the time the charge had been executed, it had had no actual or constructive knowledge of any interest in the property other than that of the first defendant and where the option, even if genuine, had not been validly exercised prior to the end of the lease.
Land – Charge. The claimant bank had a registered charged over the first defendant's property. The second defendant claimed to have leased the property with an unregistered option to buy it from the first defendant. The bank sought declarations concerning the priority of its legal charge over the property. The Chancery Division held that the bank was entitled to the declarations sought where, at the time the charge had been executed, it had had no actual or constructive knowledge of any interest in the property other than that of the first defendant and where the option, even if genuine, had not been validly exercised prior to the end of the lease.
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