JMMB Merchant Bank Limited (Formerly Capital and Credit Merchant Bank Ltd) v Real Estate Board

Mortgage – Charge. The appeal was concerned with the interpretation of s 31 of the Real Estate (Dealers and Developers) Act 1987 (REDDA). The Privy Council held that a charge which a vendor created in favour of the respondent Real Estate Board, under s 31(4) of REDDA, was valid without its registration in the Companies Register. Further, s 31(5) of REDDA conferred the ranking on the charge and not on the sums secured by a more general charge which the authorised financial institution could prove to have been advanced to fund such construction and works.

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