The question of the rate of interest payable under a mortgage after maturity is discussed elsewhere (f), but the question of notice or interest in lieu of notice after maturity belongs to the subject matter of the present chapter.

Apart from statute and as a general rule, where it may be inferred from the transaction that the loan is intended to be of a permanent character (g) a mortgagor must, after default in payment on the day, give to the mortgagee six months' notice of his intention to pay off the mortgage or pay six months' interest in lieu of notice (h). This rule is founded on the equitable maxim that "he who seeks equity must do equity," and a mortgagor who comes into equity for relief after his estate is forfeited at law is required as the price of redemption to deal equitably by his mortgagee and give him a reasonable time to find a new investment for his money (i).

(f) See chapter 29, Interest, Sec. Sec. 313, 314. (g) Fitzgerald's Trustee v. Mellersh, [1892] 1 Ch. 385. (h) Smith v. Smith, [1891] 3 Ch. 550, 18 R.C. 119; Archbold v. Building and Loan Association, 1888, 15 O.R. 237. (i) Browne v. Lockhart, 1840, 10 Sim. 420.

The period of six months, it will be observed, is the same as that which is allowed in actions for redemption and foreclosure or sale.

A mortgagor may, at any time after default, redeem the mortgage without notice if he pays six months interest in lieu of notice (j). Where the mortgage deed reserves an option to the mortgagor to pay off the mortgage moneys or any part thereof at any time before the expiration of the mortgage, and the parties after the maturity of the mortgage continue to deal upon its terms as far as applicable, the option may still be exercised by the mortgagor after the maturity of the mortgage, and the mortgagee is not entitled to six months' notice (k).

If a mortgagee demands payment or takes any steps to enforce his security he will not be entitled to notice or interest in lieu of notice (I).

If six months' notice is given and the money is not paid on the very day of the expiration of the notice the mortgagee may require a further six months' notice or interest in lieu of notice (m), but if a mortgagee, after receiving six months' notice, unreasonably refuses a tender of the debt with interest and costs, interest ceases to run from the date of the tender

In a case in England an order for foreclosure was made in the usual form, and the usual certificate also was made appointing a day six calendar months from the date of the certificate as the time of redemption, on payment of the principal money with interest up to that day and costs, and it was held that the mortgagor could not claim to redeem on an earlier day, on payment of the principal money with interest up to the time of payment only and the costs (o).

(j) Hutton v. Brown, 1881', 45 L.T. 343; Johnson v. Evans, 1889, 61 L.T. 18.

(k) Archbold v. Building and Loan Association, 1888, 16 O.A.R. 1; Banner v. Berridge, 1881, 18 Ch.D. 254.

(l)Lett v. Hutchins, 1871, L.R. 13 Eq. 176; Bovill v. Endle, [1896] 1 Ch. 648; Re Houston, Houston v. Houston, 1882, 2 O.R. 84.

(m) In re Moss, Levy v. Sewill, 1885, 31 Ch.D. 90; Garforth v. Bradley, 1755, 2 Ves. Sen. 675, at p. 678; Bank of New South Wales v. O'Connor, 1889, 14 App. Cas. 273.

(n) Edmondson v. Copland, [1911] 2 Ch. 301.

The foregoing statement of the law must in Ontario be read subject to the provisions of the Mortgages Act, R.S.O. 1914, c. 112, ss. 15 and 16, as follows:

15.- (1) In the case of mortgages made after the 1st day of July, 1888, and before the 12th day of June, 1903, unless it is otherwise expressly provided in the mortgage or otherwise with respect to notice or the payment of interest in lieu of notice, the mortgagor may pay the whole principal money if overdue or any instalment thereof which has become payable according to the terms and conditions of the mortgage without previous notice to the mortgagee and without the payment of any interest in lieu of such notice.

(2) Principal money or any instalment thereof shall not be deemed to be overdue or payable within the meaning of this section where it has become payable only by reason of default in payment of part of the principal or interest.

16.- (1) Notwithstanding any agreement to the contrary, where default has been made in the payment of any principal money secured by a mortgage of freehold or leasehold property made on or after the 12th day of June, 1903, the mortgagor or person entitled to make such payment, may at any time, upon payment of three months' interest on the principal money so in arrear, pay the same, or he may give the mortgagee at least three months' notice, in writing, of his intention to make such payment at a time named in the notice, and in the event of his making such payment on the day so named he shall be entitled to make the same without any further payment of interest except to the date of payment.

(2)If the mortgagor or person entitled to make such payment fails to make the same at the time mentioned in the notice he shall thereafter be entitled to make such payment only on paying the principal money so in arrear and interest thereon to the date of payment together with three months' interest in advance.

(3) Nothing in this section shall affect or limit the right of the mortgagee to recover by action or otherwise the principal money so in. arrear after default has been made.

(o) Hill v. Rowlands, [1897] 2 Ch. 361.

If a mortgage becomes due by virtue of an acceleration clause which provides that the mortgagor on payment of the arrears shall be relieved from the consequences of his default, the court will also relieve against a provision in the mortgage that in case of default the mortgagor shall not be at liberty to pay the mortgage except after notice or upon payment of interest in lieu of notice (p).

It has been held that the English rule which requires a mortgagor in default to give to the mortgagee six months' notice of his intention to pay the mortgage debt or in lieu of notice to pay six months' additional interest is not in force in Alberta (q).