The appellants defaulted on a commercial loan secured by a collateral mortgage.
The respondent lender invoked an acceleration clause to demand the outstanding principal and unaccrued future interest.
The appellants argued the contract did not permit accelerating future interest and that section 17 of the Mortgages Act capped their liability.
The Court of Appeal dismissed the appeal, holding that the contract's plain language included future interest in the accelerated indebtedness.
Furthermore, the Court clarified that section 17 of the Mortgages Act only applies to defaults in the payment of principal occurring after the contractual maturity date, not to defaults during the term of the mortgage.
