The Court-appointed Receiver sought approval of a lien claim settlement, administrative expenses, its fees, and directions regarding the mortgagee's claim for three months' bonus interest upon default.
The Court approved the settlement, expenses, and fees.
However, the Court directed the Receiver to reject the mortgagee's claim for bonus interest, finding that the mortgage provision violated section 8 of the Interest Act by imposing a higher charge on arrears.
The Court also held that section 17 of the Mortgages Act does not apply to distributions by a court-appointed receiver.
