Part 2Security over Moveable Property
Chapter 1Pledge
Ranking of pledges etc.
I162Effect of diligence on pledge
1
Subsection (2) applies where diligence is executed in respect of property which is, or any part of which is, encumbered by a pledge.
2
The pledge has, in respect of the property or (as the case may be) the part, priority in ranking over the diligence except in relation to any part of the secured obligation which consists of a sum—
a
advanced after execution of the diligence, and
b
not required to be advanced by—
i
a contractual agreement entered into before execution of the diligence, or
ii
an undertaking entered into before execution of the diligence.
3
Subsection (4) applies where a pledge is created over property in respect of which, or in respect of part of which, diligence has been executed.
4
The diligence has, in respect of the property or (as the case may be) the part, priority in ranking over the pledge.