A mortgagor in possession of the mortgaged property is not liable to the mortgagor for allowing the property to deteriorate, but he must not commit any act which is destructive or permanently injurious thereto, if the security is insufficient or will be rendered insufficient by such act (u).

(p) As to the right of possession as between mortgagor and mortgagee, see chapter 22, Action for Possession, Sec. 212. As to the rights of a mortgagor in possession, cf. Sec. 215.

(q) Ex parte Wilson, 1813, 2 Ves. & B. 252, 18 R.C. 382; Yorkshire Banking Co. v. Mullan, 1887, 35 Ch.D. 125; Wafer v. Taylor, 1852, 9 U.C.R. 609.

(r) National Mercantile Bank v. Hampson, 1880, 5 Q.B.D. 177.

(s) Ex parte National Mercantile Bank, In re Phillips, 1880, 16 Ch.D. 104.

(t) Hislop v. Joss, 1901, 3 O.L.R. 281.

The mortgagor is not entitled to take part of the inheritance by cutting timber, opening mines, etc., but as far as the common law is concerned the only remedy of the mortgagee is. to take possession. Equity has improved and extended the mortgagee's remedy but grants the remedy only where the effect of the mortgagor's acts is to imperil the security. It will not interfere unless the security is scanty or will be rendered scanty by the waste in question, and even if the security is scanty it will not interfere if the waste is meliorating waste, that is, of a kind which increases the value of the property (v).

If the person in possession of the mortgaged land commits waste so as to imperil the security, as by cutting standing timber, he is liable to account therefor to the mortgagee, and where there is no evidence of bad faith the injury actually sustained by such waste is the measure of damages (w). The liability to account is not usually important in the case of the mortgagor himself as he is almost always personally liable for the whole mortgage debt, but the mortgagee has also the right of compelling a purchaser of the land or subsequent mortgagee in possession to account for waste committed by him (x) or of obtaining payment from the purchaser of timber sold and removed (y). The registration of a mortgage constitutes notice of the mortgage to a subsequent purchaser of timber standing on land included in the mortgage (z).

(u) Indian Transfer of Property Act, 1882, s. 66, in Appendix III. to Strahan, Law of Mortgages, 2nd ed., pp. 223-4.'

(v) Strahan, Law of Mortgages, 2nd ed., pp. 15, 45-46; King v. Smith, 1843, 2 Hare 239, 18 R.C. 98; Wafer v. Taylor, 1852, 9 U.C.R. 609; Russ v. Mills, 1859, 7 Gr. 145; cf. Hixon v. Reaveley, 1904, 9 O.L.R. 6.

(w) McLean v. Burton, 1876, 24 Gr. 134.

(x) McLeod v. Avey, 1888, 16 O.R. 365.

(y) Scott v. Vosburg, 1880, 8 O.P.R. 336.

The mortgagee is entitled to an injunction restraining the person in possession from committing waste which may imperil the security (a). Such an injunction may also be granted at the suit of an execution creditor (6).

(z) McLean v. Burton, supra.

(a) Farrant v. Lovell, 1750, 3 Atk. 723; King v. Smith, supra; McLean v. Burton, supra; McLeod v. Avey, supra.

(b) Wason v. Carpenter, 1867, 13 Gr. 329.