Assignment or change in rank of a mortgage
For a bank (A), three land charges are registered for three different loans. The first one is for 100 TEUR, the second one is for 20 TEUR, and the third one is for 30 TEUR. The first loan can be fully repaid prematurely at any time due to contractual agreements. The other two loans still have a commitment of 18 months.
Question: If the loan of 100 TEUR is now repaid prematurely, could the existing land charge be assigned to another bank (B)? Will this land charge remain in first position after the loan is repaid, or can the bank (A) ensure that the other two land charges move up and the first land charge becomes subordinate?
