Does a chattel mortgage need to be rescinded if the mortgagor is a tenant of a property where the mortgage was made prior to the tenant becoming a tenant?
Saskatchewan, Canada
The following excerpt is from Western Mobile Homes Ltd. v. Gaudet, 1971 CanLII 762 (SK QB):
A section similar to this was considered in Stott v. Heninger, 1935 CanLII 23 (SCC), [1935] S.C.R. 408, [1935] 3 D.L.R. 700. The point at issue in that action was whether the fact that a chattel mortgage came into existence before the mortgagor became a tenant would preclude the removal of the restriction. It was held that there was no restriction in any event, whether the mortgage was made before or after the commencement of the tenancy.
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