Mortgage Bond Ranking Disclosure

Summary

Mortgage bonds are not required to disclose their ranking order over the bonded property. However, it is a well-established practice to indicate whether a bond is first, second, or third at the time of registration. Despite this, a bond can still be registered even if it is only labeled as a mortgage bond without specifying its ranking order.

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rephrase The practice of disclosing the ranking of a specific bond is, however, an old and established one. It indicates the ranking that a specific bond enjoys at the time of registration of that bond: that is, whether it is a first, second or third bond over a specific property. A bond cannot, however, be denied registration if it is described only as a mortgage bond and not as a first, second or third mortgage bond.
The practice of indicating the ranking of a bond is well-established. It shows whether the bond is first, second, or third in order at the time of registration. However, a bond can still be registered even if it is only labeled as a mortgage bond without specifying its ranking order.