This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 537.— Can a bank take a mortgage to secure a current loan?
In event of a mortgage being taken to secure a current loan, must this then be considered as past due within the meaning of the Bank Act as affecting the Government statement ?
Answer.—A bank may take a mortgage to secure any existing loan, whether the same is current or overdue. If taken for a current loan it does not make the loan past due in any sense.