Bank of New Zealand v Development Finance Corporation of New Zealand - [1988] 1 NZLR 495

Property law — Mortgage — Mortgagee sale — Deed of priority limited priority of first mortgage to bank to $170,000 plus interest for one year, a total of $201,025 - Second mortgagee exercised power of sale and bought in at auction subject to first mortgage to bank — Bank in fact owed almost $361,000 at date of sale — Whether the common law rules about tacking further advances to a security are in force in New Zealand even though the security is under the Land Transfer Act — Whether bank was entitled only to $201,025 on discharge of its mortgage or to all money secured by mortgage — Whether deed of priority was an instrument which created any estate or interest in the land — Land Transfer Act 1952, ss 2, 104 and 105 — Property Law Act 1952, s 101.