Charges register 0 "obligation to make further advances"

dc197

I've just downloaded the title for my old house, to make sure that it has been transferred out of my name correctly.
All good.

Although it's no longer any of my business, I'm curious about an extra entry in the charges register which I don't understand.
What does it mean please?


Old title when in my name:

C: Charges Register
This register contains any charges and other matters that affect the land.
1 A Transfer of the land in this title dated 12 December 1997 made
between (1) Barratt Northampton Limited and (2) {{first owners}} contains restrictive covenants.
NOTE: Original filed.
2 (27.07.2009) REGISTERED CHARGE dated XXXX
3 (01.11.2012) Proprietor: {{my old lender}}

New title in new owners' names:

C: Charges Register
This register contains any charges and other matters that affect the land.
1 A Transfer of the land in this title dated 12 December 1997 made between (1) Barratt Northampton Limited and (2) {{first owners}} contains restrictive covenants.
NOTE: Original filed.
2 (08.07.2016) REGISTERED CHARGE dated YYYY
3 (08.07.2016) Proprietor: {{new owners' lender}}
4 (08.07.2016) The proprietor of the Charge dated YYYY referred to
above is under an obligation to make further advances. These advances
will have priority to the extent afforded by section 49(3) Land
Registration Act 2002.

what does the bold part mean?

Thanks

Land_Registry

The borrower and lender can agree when the loan is made to include an obligation on the lender's part to make further advances.

For example a property may require renovation and the parties agree that the secured monies will be advanced instalments as improvements are made.

It's effect on the register is essentially that any further advances under the terms of that charge would have priority over any second loan the borrower might secure for example with another lender.

The borrower and lender would of course know the precise details behind their agreement and the obligation