Sec. 391. Proceedings not to be taken without leave, p. 742.

Sec. 392. Excepted cases, p. 744.

Sec. 393. Powers of the judge, p. 746.

Sec. 394. Retroaetive operation, p. 748.

Sec. 395. Power to make rules, p. 749.

Sec. 396. Lands situate or mortgage made without Ontario, p. 749.

Sec. 397. Duration of the statute, p. 749.

Sec. 391. Proceedings not to be taken without leave

5 George V, Chapter 22.

An Act to give further power to Courts with respect to the Recovery of Money secured by Mortgage and other similar matters.

Assented to 8th April, 1915. HIS MAJESTY, by and with the advice and consent of the

Legislative Assembly of the Province of Ontario, enacts as follows:-

1. This Act may be cited as The Mortgagors' and Purchasers' Relief Act, 1915.

2. - (1) No person shall,-

(a)take or continue proceedings by way of foreclosure or sale or otherwise, or proceed to execution on or otherwise to-the enforcement of, any judgment or order of any court, whether entered or made before or after the passing of this Act, for the recovery of principal money secured by any mortgage of land or any interest therein (a) made or executed prior to the fourth day of August, 1914;

(a) It has been said that the statute should be construed liberally, and the case of a derivative mortgage falls within its provisions. In the circumstances of a particular case proceedings upon a derivative mortgage were stayed on the application of the original mortgagees (the makers of the derivative mortgage). Re Shepard and Rosevear and Moyes Chemical Co., 1918, 42 O.L.R. 184. On the other hand, see Fisher v. Ross, 1914, 24 M.R. 773, at p. 778, 19 D.L.R. 69, at p. 72, and Chapman v. Purtell, 1915, 25 M.R. 76, 22 D.L.R. 860,

(b) take or continue any proceedings under any power of sale, or levy or distress, or take, resume or enter into possession of any land or interest therein for the recovery of principal money under any power contained in a mortgage of land, or of any interest therein, executed prior to the fourth day of August, 1914;

(c) declare or take advantage of the forfeiture of any land or of any right or interest acquired therein or of any sum of money paid for or on account of the purchase money of such land or of any interest therein, or by way of deposit or otherwise, under the terms of a contract for sale or purchase made or entered into prior to the fourth day of August, 1914;

(d) take or continue any proceedings for the recovery of any part of the principal money secured by mortgage or payable as part of the purchase money of any land or any interest therein payable by the purchaser or mortgagor upon any covenant or agreement as principal or guarantor or otherwise, whether express or implied, made or entered into prior to the fourth day of August, 1914, or enforce by execution or other process any judgment obtained in respect of any such covenant or agreement;

(e) take or continue proceedings for the recission of, or for the recovery of damages for the breach of any contract involving the expenditure of money in providing improvements or services upon lands, or for the common benefit of the owners of lands laid out in .building lots, upon the ground that default has been made in making such expenditure or in providing such improvements or services, when the date at which such expenditure should have been made or such improvements or services made or provided is later than the 4th day of August, 1914, except by leave of a judge granted upon application as hereinafter provided.

(2) The application shall be upon originating notice in accordance with the" practice of the Supreme Court and shall be made,- (a) in every case in which it is sought to commence or continue proceedings in the Supreme Court, in the County of York to a Judge of the Supreme Court sitting in Chambers, and in any other county or in a district to the local where the opinion is expressed that the Manitoba statute of 1914, familiarly known as the Moratorium Act, should be construed strictly. In the annotation to the last mentioned case in 22 D.L.R. 865 ff., there is a useful note of some decisions under British and Manitoba moratory statutes.

Judge of the Supreme Court sitting in Chambers or to a Judge of the Supreme Court sitting in Chambers;

(b) in every case in which it is sought to exercise some right or remedy or take any proceeding or do any act out of court, in the County of York to a Judge of the Supreme Court sitting in Chambers, and in any other county or in a district to the local Judge of the Supreme Court, or to a Judge of the Supreme Court sitting in Chambers;

(c) in every case in which it is sought to take or continue proceedings in a county, district or division court, to the judge of the proper county, district or division court.

3.- (1) Subject to the provisions hereinafter contained, no forfeiture of any interest acquired under a contract for the sale or purchase of land or any interest therein, given, made or entered into prior to the fourth day of August, 1914, shall take effect or be deemed to have taken effect since the fourth day of August, 1914, until after an order made by a judge as provided for in section 2.

(2) Subject to the provisions hereinafter contained no principal money secured or payable by any mortgage of or contract for purchase or sale of land, made or entered into prior to the 4th day of August, A.D. 1914 (or any extension or renewal thereof made or entered into after the 4th day of August, 1914) shall be deemed to be due or in default so as to affect or make inoperative any provisions therein for discharging, releasing or conveying any portion or portions of the land thereunder in accordance with the terms or provisions therefor in such mortgage or contract contained, the operation of such provisions being hereby extended so long as the payment of such principal is not enforceable under the provisions of this Act; provided, however, that should the vendor or mortgagee claim a readjustment of the amount to be paid for a discharge, release or conveyance of one or more portions in order to ensure sufficient security for the amount of principal remaining unpaid, upon failure to agree thereon such claim shall be settled by the Judge. (6).