Horace Borrowed $100 000 from Blossom

question 78

Multiple Choice

Horace borrowed $100 000 from Blossom.As security for repayment of that loan,he created a mortgage over a piece of land called Blackacre.Horace has repaid part of the loan,but still owes $40 000 to Blossom.He is unable to repay the outstanding amount or make the next mortgage payment.Which of the following statements is TRUE?

• A)Under normal circumstances,Blossom has the right to take possession of Blackacre,but only if the land is located in a land titles system jurisdiction.
• B)Because the parties have both a loan contract and a mortgage,Blossom has an absolute right to sue Horace personally for $40 000,regardless of the province or territory in which Blackacre is located.
• C)If Blossom exercises a right to take possession of Blackacre,she cannot later use the remedy of foreclosure.
• D)If Blossom exercises a right to take possession of Blackacre,Horace's equity of redemption will necessarily be terminated.
• E)If the mortgage contract contains an acceleration clause,then Horace may be liable to immediately pay $40 000,even if the parties originally expected that he would pay half of that amount next year.

---

Definitions:

Maximum Loan

The largest amount of money that one can borrow from a lender under specified terms.

Insured

An insured individual is someone who is covered under an insurance policy, protecting them against certain risks or losses.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays any expenses.

Medical Bills

Charges incurred for medical products or services, including hospital care, physician services, and medications.