Deeley v. Lloyds Bank, Ltd

Subject_ Right in Security — Second Mortgage Intimated to First Mortgagee — Indefinite Payments — Appropriation. Facts: Where a bank holding a first mortgage over property in security for advances on a current account receives intimation of a second mortgage over the property, the priority of the bank as first mortgagee only extends to advances made before the date of the intimation, and all payments to the account after that date must be applied by the bank in reduction of the balance due to it at that date.

For application to the law of Scotland see Union Bank of Scotland v. Page: 626 ↓

This case was an appeal from a judgment of the Court of Appeal (Fletcher Moulton and Buckley, L.J.J, Cozens-Hardy, M.R. , diss.) affirming a judgment of Eve, J.

The facts appear from their Lordships' considered judgment, which was delivered as follows—

Lord Atkinson —The facts in this case are in the main not in dispute; it is upon the proper inference to be drawn from them that the controversy arises.