267. Modern law of tacking.

A prior mortgagee1 has a right to make further advances to rank in priority to subsequent mortgages2, whether legal or equitable:

  1.  

    (1)     if an arrangement to that effect has been made with the subsequent mortgagees3;

  2.  

    (2)     if he had no notice of those subsequent mortgages at the time when the further advance was made by him4; or

  3.  

    (3)     whether or not he had such notice, where the mortgage imposes an obligation on him to make further advances5.

These provisions apply whether or not the prior mortgage was made expressly for securing further advances6. As registration of the subsequent incumbrance as