Land charges and foreign security rights

(1) For the purposes of this Act, land charges and foreign security rights that offer comparable security and entitle the creditor to satisfy its claim also by realisation of the encumbered land or right within the meaning of section 13(1), first sentence, are equivalent to mortgages.
(2) To land charges that serve, under a purpose agreement between the Pfandbrief bank and the respective owner of the land, to secure a loan claim, section 12(1) applies with the proviso that the land charge, together with the loan claim underlying it, takes the place of the mortgage. Section 5(1a) applies accordingly where a purpose agreement covers several claims. Several claims intended for cover have, in case of doubt, equal rank. Insofar as foreign security rights secure claims of different creditors, the rank of a claim intended for cover is determined under the rules of the applicable law.
(3) Where the Pfandbrief bank has acquired land at a forced sale to prevent losses on a mortgage or land charge to which it was entitled on the land, and has had a land charge entered in its own favour in place of the deleted mortgage or land charge, section 12(2) applies accordingly to it.