Understanding marshalling in mortgage priorities

Although a mortgagee holding multiple securities is permitted to realise its securities in such order as it sees fit, if the choice of order negatively impacts a subsequent mortgagee holding fewer securities then equity will intervene to assist that subsequent under the doctrine of marshalling.

This guidance note explains the doctrine of marshalling and its relevance in determining mortgage priorities. It also provides guidance to legal practitioners who may encounter a more complicated marshalling situation where there are two or more subsequent mortgagees.

See Understanding marshalling in mortgage priorities.