The applicant mortgagee brought an application for declarations that a commercial mortgage registered against the respondent's property was a closed mortgage with no prepayment privilege, that it was entitled to all lost interest to maturity upon any early prepayment, and that forced insurance coverage costs were recoverable.
The respondent corporate mortgagor argued it should be entitled to pay out the mortgage upon a sale without paying interest to maturity.
The court granted the declarations, finding that the mortgage terms clearly prohibited early prepayment and that corporate borrowers do not have a statutory right to redeem a mortgage with only a three-month interest penalty under the Mortgages Act.
The court also found the insurance costs were properly recoverable under the mortgage terms.
