This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 118.— Jones's farm is mortgaged to a loan company, and his growing crops are covered by a chattel mortgage to a private banker. The loan company take proceedings to sell the farm. Will the chattel mortgage hold good against them or can the company take the crop without paying the private banker?
Answer.—The law on this subject is clearly settled in Ontario by the case of Bloomfleld v. Hellyer, reported in Appeal Reports, vol. 22, p. 232, the head note of which is as follows:
"A mortgagor after default is, as far as crops growing " upon the mortgaged land are concerned, in the position of "a tenant at sufferance, and cannot by giving a chattel "mortgage upon the crops confer a title thereto, upon the " chattel mortgagee to the prejudice of the mortgagee of the "land, or any one claiming under him, who has entered into " possession of the land before the crop is harvested."
The result of this decision is that the mortgagor can by chattel mortgage grant to the chattel mortgagee only such interest in the growing crops as he himself has, and, as this interest is subject to the right of the mortgagee of the land to enter, upon default, and take possession of the land, including the crops, the chattel mortgagee would have no claim against the mortgagee of the land, because he took possession and removed the crops.