A secured lender applied to vary a criminal restraint order or obtain relief allowing enforcement of a collateral mortgage against property subject to forfeiture proceedings following a drug conviction.
The court considered the interaction between restraint orders under the Criminal Code and forfeiture orders under the Controlled Drugs and Substances Act when a forfeiture order is appealed and stayed.
The court held that the restraint order ceased once the forfeiture order was made, even though the forfeiture order was stayed pending appeal.
As an innocent third‑party secured creditor with a prior registered mortgage in default, the lender was entitled to exercise its remedies under the Mortgages Act.
The court authorized the lender to enforce its mortgage and directed that any net sale proceeds remaining after satisfaction of secured debts be paid into court pending resolution of the criminal appeal.
