The ordinary items of the account where the mortgagee has not taken possession (g) are the principal, the interest and the costs, and in addition there may be items of expense incurred by the mortgagee and chargeable to the mortgagor under the terms of the mortgage or by statute (h). The items of interest and costs are discussed in subsequent chapters (i). On the taking of the account in respect of a mortgage to secure repayment of a loan, if the making of the loan is disputed the mortgagee must prove that the money was in fact paid to the mortgagor or to some other person upon the order of the mortgagor (j). The mortgagee is, however, entitled to the whole principal sum stated in the mortgage to have been advanced notwithstanding that at the time of the advance part of such sum was in fact deducted or withheld by way of bonus or commission or that the mortgagee obtained some other collateral advantage for which he might legitimately stipulate (k).

(g) As to accounting by the mortgagor in possession, see Sec. 294, infra.

(h) E.g., insurance premiums. See chapter 34, Fire Insurance, Sec. 372. Apart from power conferred by the terms of the mortgage or statute, the mortgagee cannot charge such premiums in his accounts, except when he is mortgagee in possession, and then the premiums fall under "just allowances." Dobson v. Land, 1850, 8 Hare 2,16; Bellamy v. Brickenden, 1861, 2 John & H. 137; Scholefield v. Lockwood, 1863, 11 W.R. 555; 21 Halsbury, Laws of England, p. 241.

(i) See chapter 29, Interest, and chapter 30, Costs.

(j) See, e.g., Black v. Hiebert, 1907, 38 Can. S.C.R. 557, in which a mortgage was declared fraudulent as against the mortgagor, the money having been advanced by the mortgagee, without the express authority of the mortgagor, to a lumber company which was supplying material to the contractors for a building on the mortgaged land.

A mortgagee has a lien for moneys paid to redeem the mortgaged lands sold for taxes (l), but a mortgagee who has been a party to a breach of trust in taking the mortgage has no lien for money paid by him for taxes on the mortgaged lands or for money paid to redeem them from a sale for taxes, he being in the same position as a stranger paying taxes (m).

If the mortgagee has taken possession various additional items may enter into the account. The mortgagee may be entitled to credit for money paid by him for repairs and other purposes, and he will be chargeable with rents and profits which he has received or which he ought to have received (n).

It is provided in Ontario by rule 410 as follows (o):

410. Under an order of reference, the master shall have power:

(a) To take accounts with rests or otherwise;

(b) To take account of rents and profits received or which, but for wilful neglect or default, might have been received;

(c) To set occupation rent;

(d) To take into account necessary repairs, and lasting improvements, and costs and other expenses properly incur-red otherwise, or claimed to be so;

(e) To make all just allowances;

(f) To report special circumstances;

(k) As to a stipulation for a collateral advantage, see chapter 3, Legal Mortgage in Equity, Sec. 26.

(l) Wiley v. Ledyard, 1883, 10 O.P.R. 182.

(m) Graham v. British Canada loan and Investment Co., 1898, 12 M.R. 244; cf. In re Leslie, Leslie v. French, 1883, 23 Ch.D. 552; Falcke v. Scottish Imperial Insurance Co., 1886, 34 Ch.D. 234.

(n) See chapter 28, Mortgagee in Possession.

(o) It will generally be in the case of a mortgagee in possession that the provisions of this rule will be applied, and they will be discussed in chapter 28, Sec. 303. See also chapter 30, Costs, Sec. 321.

(g) And generally, in taking the accounts, to inquire, adjudge, and report as to all matters relating thereto, as fully as if the same had been specifically referred.