The borrowers brought a motion within a receivership proceeding to discharge a mortgage on their residential property.
They had paid the mortgage in full to the mortgage broker, First Swiss, who had assigned the mortgage to Olympia Trust Company as a bare trustee for investors.
First Swiss misappropriated the funds and failed to remit them to Olympia.
The court found that First Swiss had actual and apparent authority to act as the agent for Olympia and the beneficial owner, Loucks.
The motion was granted, the mortgage was ordered discharged, and costs were awarded to the borrowers.
