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In This Volume

  • 8 (1) If a default occurs, all the mortgage money then owing to the lender will, if the lender chooses, at once become due and payable.
  • (2) If a default occurs the lender may, in any order that the lender chooses, do any one or more of the following:
  • (a) demand payment of all the mortgage money;
  • (b) sue the borrower for the amount of money due;
  • (c) take proceedings and any other legal steps to compel the borrower to keep the borrower’s promises and agreements;
  • (d) enter upon and take possession of the land;
  • (e) sell the land and other property by public auction or private sale, or lease the land on terms decided by the lender
    • (i) on 30 days notice to the borrower if the default has continued for 30 days, or
    • (ii) without notice to the borrower if the default has continued for 60 days or more;
  • (f) apply to the court for an order that the land be sold on terms approved by the court;
  • (g) apply to the court to foreclose the borrower’s interest in the land so that when the court makes its final order of foreclosure the borrower’s interest in the land will be absolutely vested in and belong to the lender;
  • (h) appoint a receiver of the land;
  • (i) enter upon and take possession of the land without the permission of anyone and make any arrangements the lender considers necessary to
    • (i) inspect, lease, collect rents or manage the land,
    • (ii) complete the construction of any building on the land, or
    • (iii) repair any building on the land;
  • (j) take whatever action is necessary to take, recover and keep possession of the land.
  • (3) Nothing in subsection (2) affects the jurisdiction of the court.
  • (4) If the lender sells the land by public auction or by private sale the lender will use the amount received from the sale to pay
  • (a) any real estate agent’s commission,
  • (b) all adjustments usually made on the sale of land,
  • (c) all of the lender’s expenses and costs described in subsection (6), and
  • (d) the mortgage money
  • and will pay any surplus
  • (e) according to an order of the court if the land is sold by an order of the court, or
  • (f) to the borrower if the land is sold other than by an order of the court.
  • (5) If the money available to pay the mortgage money after payment of the commission, adjustments and expenses referred to in subsection (4)(a) to (c) is not sufficient to pay all the mortgage money, the borrower will pay to the lender on demand the amount of the deficiency.
  • (6) The borrower will pay to the lender on demand all expenses and costs incurred by the lender in enforcing this mortgage. These expenses and costs include the lender’s cost of taking and keeping possession of the land, the cost of the time and services of the lender or the lender’s employees for so doing, the lender’s legal fees and disbursements on a solicitor and client basis, unless the court allows legal fees and disbursements be paid on a different basis, and all other costs and expenses incurred by the lender to protect the lender’s interest under this mortgage. These expenses and costs will be added to the principal amount, be payable on demand and bear interest until they are fully paid.
  • (7) If the lender obtains judgment against the borrower as a result of a default, the remedies described in subsection (2) may continue to be used by the lender to compel the borrower to perform the borrower’s promises and agreements. The lender will continue to be entitled to receive interest on the mortgage money until the judgment is paid in full.
  • (8) If the lender does not exercise any of the lender’s rights on the happening of a default or does not ask the borrower to cure it, the lender is not prevented from later compelling the borrower to cure that default or exercising any of those rights in connection with that default or any later default of the same or any other kind.