Is a mortgage of property not in the mortgagor’s possession enforceable?
Ontario, Canada
The following excerpt is from Gordon Mackay & Co. Ltd. v. Capital Trust Corp. Ltd., 1926 CanLII 16 (ON CA):
There are some cases in this Province which must be carefully considered. In Perrin v. Wood, 21 Gr. 492, Blake, V.-C., held that a mortgage of property not in the mortgagor’s possession was, in the words of Kindersley, V.-C., in Reeve v. Whitmore (1863), 9 Jur. N.S. 243, an assignment which, “though inoperative as to the future property at law, will in equity pass the interest in the future property.” Kindersley, V.-C., continues:—
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