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In This Volume

  • 10 (1) This section applies if the interest mortgaged shown in the mortgage form is or includes a leasehold interest.
  • (2) The borrower represents to the lender that
  • (a) the lease is owned by the borrower subject only to those charges and encumbrances that are registered in the land title office at the time the borrower signs the mortgage form,
  • (b) the lease is in good standing,
  • (c) the borrower has complied with all the borrower’s promises and agreements contained in the lease,
  • (d) the borrower has paid all rent that is due and payable under the lease,
  • (e) the lease is not in default, and
  • (f) the borrower has the right to mortgage the lease to the lender.
  • (3) The borrower will
  • (a) comply with the lease and not do anything that would cause the lease to be terminated,
  • (b) immediately give to the lender a copy of any notice or request received from the landlord,
  • (c) immediately notify the lender if the landlord advises the borrower of the landlord’s intention to terminate the lease before the term expires, and
  • (d) sign any other document the lender requires to ensure that any greater interest in the land that is acquired by the borrower is charged by this mortgage.
  • (4) Any default under the lease is a default under this mortgage.
  • (5) The borrower promises the lender that the borrower will not, without first obtaining the written consent of the lender,
  • (a) surrender or terminate the lease, or
  • (b) agree to change the terms of the lease.
  • (6) The lender may perform any promise or agreement of the borrower under the lease.
  • (7) Nothing done by the lender under this section will make the lender a mortgagee in possession.