4.- (1) Subject to the provisions hereinafter contained, sections 2 and 3 shall not apply to any contract for sale or purchase or to any mortgage [made or entered into after the 4th day of August, 1914, or to any extension or renewal (c) made or entered into after the 4th day of August, 1914, of a mortgage made or entered into prior to that date where such extension or renewal is for not less than three years, and the rate of interest provided for in the original mortgage is not increased by such extension or renewal (d)], nor to the proceedings taken for the recovery of interest (e) (including arrears of interest which may under the terms of any such mortgage or extension or renewal have been or may be added to the principal money secured thereby) or rent or taxes or insurance or other disbursements for which the mortgagor was liable in the first instance, and as to which he is in default, nor to any proceedings or act done by a mortgagee in possession on the 4th day of August, 1914, with respect to the land or interest in land of which he is the mortgagee, nor to proceedings taken for the recovery of interest, taxes or insurance or other disbursements payable by the mortgagor in the first instance under a mortgage and paid or tendered on his default by the holder of a subsequent mortgage of the same lands.

(b) Sub-s. 2 was added in 1918 by 8 G. 5, c. 26, s. 1.

(c) This section applies to the case of a mortgage which in form is a new mortgage made since the date mentioned, but which in substance and fact is a renewal or, extension of a mortgage prior to that date. Appelbe v. Windsor Security Co., 1917, 41 O.L.R. 217, 40 D.L.R. 256, s.c. 1918, 42 O.L.R. 16.

(2)Nothing in this Act shall apply to or affect any right or remedy now exerciseable for the enforcement of any mortgage or other security of a like nature made or entered into for the purpose of securing the bonds or debentures of any corporation, but the holders of any such bonds or debentures, any trustee for them, or the mortgagee named in any such mortgage as trustee or otherwise shall have and may exercise any such right or remedy whether the same is conferred by the general law or acquired under any such mortgage or other security as fully and effectually as if this Act had not been passed.

(3) Where default is made in payment of interest, rent, taxes, insurance or other disbursements which the mortgagor or purchaser has covenanted or undertaken to pay, the mortgagee or vendor, his assignee, or personal representative shall have the same remedies,

(d) The words within the square brackets were substituted in 1916 by the statute 6 G. 5, c. 27, s. 1, for the words "or extension or renewal thereof made or entered into after the fourth day of August, 1914." In other words, under the statute as amended, proceedings may be taken by a mortgagee without leave either upon a mortgage made after the 4th of August, 1914, or upon a mortgage made prior to that date which has been renewed or extended since that date for a period of three years or over at the old rate of interest or at a smaller rate.

(e) The onus of showing that claim is one of the excepted cases is upon the mortgagee. The exception as to interest applies only to interest contracted, in the ordinary manner, to be paid, that is, to the regular gales of interest falling due at the periods mentioned in the mortgage, and does not apply to interest accruing de die in diem by reason of a special provision in the mortgage. George v. Lang, 1916, 36 O.L.R. 180, 30 D.L.R. 502.

and may exercise them to the same extent, and the consequences of such default shall in all respects be the same as if this, Act had not been passed (f), but where such interest, rent, taxes or other disbursements are paid into court or tendered to the mortgagee, vendor, assignee or personal representative he shall not continue any proceedings already commenced by him without the order required by section 2 or by section 3, as the case may be, [except that in the case of the money being paid into court the plaintiff shall, if he so elects, have the right to take the money out of court and tax the costs of the proceedings as provided by the Consolidated Rules of Practice in an ordinary action; and in the case of the money being tendered the mortgagee or vendor or his assignee or personal representative shall be entitled, to be paid costs of the proceedings already taken, the amount of such costs if not agreed upon to be taxed by the Taxing Officer of the Supreme Court in the county where the person taking the proceedings resides] (fir).