CIHM 
 
 Microfiche 
 
 Series 
 
 (IMcnographs) 
 
 ICIVIH 
 
 Collection de 
 microfiches 
 (monographies) 
 
 Canadian Institute for Historical Microraproduetiont / Institut Canadian da microraproductions historiq 
 
 uas 
 
Technical and Bibliographic Notes / Notes techniques et bibliographiques 
 
 The Institute has attempted to obtain the best original 
 copy available for filming. Features of this copy which 
 may be bibliographically unique, which may alter any of 
 the images in the reproduction, or which may 
 significantly change the usual method of filming are 
 checked below. 
 
 
 
 Coloured covers / 
 Couverture de couleur 
 
 □ Covers damaged / 
 Couverture endommagde 
 
 □ Covers restored and/or laminated / 
 Couverture restaur^ et/ou pellicul^e 
 
 I I Cover title missing / Le titre de couverture manque 
 
 I I Coloured maps / Cartes g6ographiques en couleur 
 
 □ Coloured ink (i.e. other than blue or black) / 
 Encre de couleur (i.e. autre que bleue ou noire) 
 
 I I Coloured plates and/or illustrations / 
 
 Planches et/ou illustrations en couleur 
 
 Bound with other material / 
 Reli6 avec d'autres documents 
 
 
 n 
 
 D 
 
 Only edition available / 
 Seule Edition disponible 
 
 Tight binding may cause shadows or distortion along 
 interior margin / La reliure serr6e peut causer de 
 I'ombre ou de la distorsion le long de la marge 
 int^rieure. 
 
 Blank leaves added during restorations may appear 
 within the text. Whenever possible, these have been 
 omitted from filming / Use peut que certaines pages 
 blanches ajout6es lors d'une restauration 
 apparaissent dans le texte, mais, lorsque ceia 6tait 
 possible, ces pages n'ont pas 6t6 film6es. 
 
 Additional comments / 
 Commentaires suppl6mentaires: 
 
 L'Institut a microfilm^ le meilleur exemplaire qu'il lui a 
 6t6 possible de se procurer. Les details de cet exem- 
 plaire qui sont peut-§tre uniques du point de vue bibli- 
 ographique, qui peuvent modifier une image reproduite, 
 ou qui peuvent exiger une modification dans la m6tho- 
 de nomiale de filmage sont indiqu6s ci-dessous. 
 
 I I Coloured pages / Pages de couleur 
 
 I I Pages damaged / Pages endommag6es 
 
 Pages restored and/or laminated / 
 Pages restaur6es et/ou pellicul^es 
 
 D 
 
 Pages discoloured, stained or foxed / 
 Pages d6color6es, tachet^es ou piqu6es 
 
 I I Pages detached / Pages d6tach6es 
 
 |y I Showthrough / Transparence 
 
 r^ Quality of print varies / 
 
 D 
 D 
 
 D 
 
 Quality in6gale de I'impression 
 
 Includes supplementary material / 
 Comprend du materiel suppl6mentaire 
 
 Paries wholly or partially obscured by errata slips, 
 tissues, etc., have been refilmed to ensure the best 
 possible image / Les pages totalement ou 
 partiellement obscurcies par un feuillet d'errata, une 
 pelure, etc., ont 6t6 film6es k nouveau de fa?on k 
 obtenir la meilleure image possible. 
 
 Opposing pages with varying colouration or 
 discolourations are filmed twice to ensure the best 
 possible image / Les pages s'opposant ayant des 
 colorations variables ou des decolorations sont 
 film6es deux fois afin d'obtenir la meilleure image 
 possible. 
 
 Thia Hem It filmed at the reduction ratio checked below / 
 
 Ce document eat film* au Mux de rMuetion indiqu* ci-deeaoua. 
 
 lOx 
 
 
 
 
 14x 
 
 
 
 
 ISx 
 
 
 
 
 22x 
 
 
 
 
 26x 
 
 
 
 
 30x 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 J 
 
 
 
 
 
 
 
 
 
 
 
 
 
 12x 
 
 
 
 
 16x 
 
 
 
 
 20x 
 
 
 
 
 24x 
 
 
 
 
 28x 
 
 
 
 
 Mx 
 
The copy film«d h«r* has b««n rsproducad thanks 
 to tha ganarotity of: 
 
 Law Library, 
 McCill University, 
 Montreal 
 
 Tha imagas appaaring hara ara tha bast quality 
 possibia considaring tha condition and lagibility 
 of tha original copy and in kaaping with tha 
 filming contract spaclficationa. 
 
 Original copias in printad papar covars ara fllmad 
 baginning with tha front covar and anding on 
 tha last paga with a printad or illustratad improa- 
 sion, or tha back covar whan appropriata. All 
 othar original copias ara fiimad baginning on tha 
 first paga with a printad or illustratad impraa- 
 sion. and anding on tha last paga with a printad 
 or illuatratad imprassion. 
 
 Tha last racordad frama on aach microficha 
 shall contain tha symbol -^ (moaning "CON- 
 TINUED"), or rha symbol V (moaning "END"), 
 whichavar applias. 
 
 Maps, platas, charts, ate. may ba fiimad at 
 diffarant raduction ratios. Thosa too larga to ba 
 antiraly includad in ona axposura ara fiimad 
 baginning in tha uppar laft hand cornar, laft to 
 right and top to bottom, as many framas as 
 raquirad. Tha following diagrams illustrata tha 
 mathod: 
 
 L'axamplaira filmA fut raproduit grlca A la 
 ginArosit* da: 
 
 Law Library, 
 McCill University, 
 Montreal , 
 
 Las imagas suivantes ont «t« raproduitas avec la 
 plus grand soin. compta tanu da la condition at 
 da la nattat* da l'axamplaira film«, at nn 
 eonformit* avac las conditions du contrat da 
 fllmaga. 
 
 Laa axamplairaa originaux dont la couvartura an 
 papiar ast imprim«a sont film«s an commandant 
 par la pramiar plat at an tarminant toit par la 
 darni«ra paga qui comporta una amprainte 
 d imprassion ou d'illustration. soit par la sacond 
 plat, salon la caa. Tous las autras axemplairas 
 originaux sont film«s an commanpant par la 
 pramiAra paga qui comporta una amprainta 
 d imprassion ou d'illustration at an tarminant par 
 la darni«ra paga qui comporta una talla 
 amprainta. 
 
 Un das symbolaa suivants spparaltra sur ia 
 darni«ra imaga da chaqua microficha, salon la 
 cas: la symbols -♦• signifia "A SUIVRE" la 
 symbols V signifia "FIN". 
 
 Las cartaa, planchas, tablaaux, ate, pauvant «tra 
 filmas A das toux da reduction diff«rents. 
 Lorsqua la documant ast trop grand pour «tra 
 raproduit an un saul clich«, il ast film« A partir 
 da I'angia supAriaur gaucha, da gauche d droite 
 at da haut an bas, an pranant la nombra 
 d'imagaa n«cassaira. Las diagrammas suivants 
 illustrant la mAthoda. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
MICROCOPY RESOLUTION TEST CHART 
 
 (ANSI and ISO TEST CHART No. 2) 
 
 1.8 
 
 jd ^PPL.ED IN/MGE Inc 
 
 ^K t653 Eosl Moin Street 
 
 ^^E Rochester, Ne* Yo^k 14609 USA 
 
 ".^ (716) 482 - 0300 - Phone 
 
 ^^ ■ '6) 288 - 5989 - Fa« 
 
/-//4^ 
 
 l^cal gsfak Sf^ciivWks 
 
 IN THE PROVINCE OF QUEBEC 
 
 BY 
 
 ADVOC.ITE. 
 
 cTiead 6c|c:e Ifce cinautance cJiiatituU- of illtoMttJat, 
 
 KLLM. 
 
:;» 
 
 Tile Tnist iiiiil Loim rmiiiiiiin of ('iiii;ii|; 
 
 Incnrporated b> Royal Charier A. I). IN45 
 
 Capital Subscribed . . 
 With power to increase to 
 Paid up Capital 
 Cash Reserve Fund 
 
 S 7.300,000.00 
 514,600,000.00 
 S 1,581,666.66 
 S 862,441.46 
 
 H.;ul()fflcH: .(Jrent Winch.^tfr Str.et. I„.,H|on, Kpiglanrl 
 "KKIl KS FN ('ANAI)A 
 
 I ToroMto Srivt-t, T< »|{< t.\T( ;. 
 St .Ja:nfM Street, M ONTI; K.\ I, 
 
 , ............ ,1,1 J V- 1, .'1 1 >.^ I n r..\ 1,. 
 
 ( l'or!a«»' Avenue, W t .\ .\ fl'KO 
 
 Money advanced at lowest current rates on the secu- 
 rity of productive City property and the Surren- 
 der value of Life Insurance policies. 
 
ESTATE SECURITIES 
 
 In the Province of Quebec 
 
 Peers Davidson, m. A 
 
 Anv(>( ATK, Montreal. 
 
 2h(/i Fihrwn;/. lilOl. 
 
 1 
 
 Please do not imngini. that tlv pap.T which I am about to 
 read, will so enlighten you on ihis subject, as to malce you, 
 torthwith, quite independe.it of lepal advice. That would be 
 the last result which ' ./ould seek to atti. = n_tiy brethren of the 
 bar might cause me to regret it ! 
 
 On the contrary, or the principle that a little learning is a 
 -ngeious thing, I believe that you will more than ever have 
 recourse to the assistance of ycur solicitors, an 3, with Christian 
 self-aonial, plac; full responsibility on their shoulders ! 
 
 The following out'ine may however prove of theoretical 
 interest to you. It may even, at t = - .es, be of practical service 
 la enabling you to instruct your legal advisers as to what course 
 they shoulo pursue or what opinion they should give you ! 
 
 Many o/you may not be aware that property and civil rights 
 mthis Province are governed entirely by the principles of the 
 ancient customary law of France, as crystallized in our Civil 
 Code. The Quebec Act of 1774, passed at a time of great unrest 
 in the American colonies and in Cf ada, granted to French 
 Canada its language, religion and law s, thereby in large measure 
 preserving it to the British Crcwn. Statutar/ ^nactmentssince 
 that date have introduced modiHcations and innovations on 
 many subjects, but our system of land securities remains 
 unaffected thereby. 
 
Tllf ri'tfli;i.):i ..(' tfii* «V-.t ;ii Uy t;,,' Urtiili .'i.iwa i 1 iTTl 
 u;l^ not I'istit't'.l l(\ thi- poliiv i.f M.'l pr. ^rrv it i..tj ;jii(l j i i i .• 
 
 u "111 ;C<.|' i«j h .vv II pre Mil. 1 1 111 MV't if land t.-niir.' uikI runt 
 
 lights tiK'ii ill fori'.- i till-. I'oiinlrv for uvi-r ii criitiun ■ml '■> 
 I ii\«' (i>r<t (I Jill K j-li-b hystt m ii|i(iii .■in aiiiii popiil.it imi at th.i 
 tiiiic, vvuiild liavf I aiisr.! iiM'i- cdi: fusi ci, if not riltt'llioa. Ti 
 iMid to the diHliiiliy, tilt- C lultl H>-l.-in, a-« t wiuplillid liytli.! 
 ►•< iniiorial Ivinir<-, tlnii llouriiliod an.i in f.ut <>o!itiiiu<d t > d i 
 -o until Is >l 
 
 t';iii;idian'< 1)1 I'n-lJHli fxt ract i.m arc in'liii.'d, 1 tliiiik lir- 
 mdy from nnfiimiliarity, to rsoinetii)n-i cavil at our Frcm li 
 InwH. I think iinju-.ly so, Cortht-y nrv un-,iiri>ii*ned in Kii(;'.isli 
 law by «ii li»>r fipiit y . i • i>on or philosophy and nrc. in I'act, 
 more directly derived fi ( in ili.it ^r. at I'.untain of law, the 
 t 'or pUH Juris Civile of J list in ian. 
 
 Our system uives ample ami ahsoliite soeiirity t<» the inv»'.s- 
 lor and enabloi us to asoertain the stiitns of titles wiili almost 
 r;.at In nntical aecuraey. .ill are pratioally held i-i t. u siinjih' ; 
 'here is little or no Ifasfllidd. 
 
 The phrase ' real e-it.iie security " si^'iiilh^s to tin; English 
 lay mind " a niorl^ano ■'. Ii sijjnitles to tli,) protossi.iiial miml 
 in thfj I»rovii:crf .,\' (iuehi-c, " a hypolheu ". These terms are 
 usually used as synonymous. They are not 80. I howt ver se 
 use them for con ver'.ii'iu,t! s'lke. 
 
 •Mtli.lN AND NATL'Hfc; i(K llYI'orilKI . 
 
 A ii^polheo, from the (Jreek h;)o si-niCy in;; ''under" and 
 litliinii ■■ I plice ", liter, illy, " I place undor ", h.id, originally, 
 seveial dilltreiit foiiiis ii Uuman law. By one. hoih the proper- 
 ty and possession were transferred to the ereditor, subject to 
 the right of the debtor to reclaim it on payinuiit of th- debt. 
 Hy another, the debtor retained the ownership but Ki'.mted the 
 [lossessiou t.J the creditor, subject to the same ri^ht in the 
 debtor to retake i! on payment of the di.bt, and subject alsi. to 
 the right of the creliTor to tak ■ and sell the property if ih- 
 debt was not paid at the e.xpiry ot tlie term. 
 
 It was found, however, that social intjrest reiiuirod thees- 
 tablishiuent of a method of "uarantee or security, which, ui:li- 
 out depriving the debtor of his properly or of even its poss 's- 
 sioi., would Rive to the creditor a real ri^lit in the thing. Tlii-t 
 method of security wis tin.iUy evolved under the Honi/in l.i\>-, 
 rectived m.iny nil. ditications under the old FrL-nch law and i.^ 
 now embodied in our Code, vitli siuh further m clill.Mt i.iis i.v 
 Miir coditicrs del :ned locally advisable. 
 
 The "hyiiothec^" of our Code may be deti.ied as a real rig it 
 upon iinnii'veabk»; made liable for the fulliimi'iit of an oiili" i- 
 
•' «ittiti- r.»rlli. I'.i.Mii lit ..;• ., oiirv, thf il.,iii^; or ti.'l iluin: 
 
 ■ 'Fm.,!!! . hill ror ..(• ih\ it'i r l.- il .)Ii!i f.ti.. i. In virl ii.- ..t i lii« 
 riil.t, thf criMlitcir ni iv ,• in-*- tli im n..v.' iI.I.-h m .|u. -lion t.. 
 
 i.vHohlnnd then liiv.' ,i pr. C, r ii|>..ji tlic pr' .u oitlif h.iL- 
 
 in orvl.r „(• r.-iik, n^. n.x.-.l hv ||,. ,'..Ip. Yo„ will nut,, t hat t !„• 
 niorti:ij{or r.tiiiri*. h..lh t h • own. rihip (uhI ,.■ p,„-,.,Ni-.n ||.. 
 in.iy .ontinuf to .•i,j.,y it „r m.iy .1 lit-iifitf it. hut omI\ snl.j,.. t ,,i 
 till CI Hc;, to the h> pot lite rr«':it<i| upon It. 
 
 Ilypotli.rxsiilmim ill .•ntlr.t V uix.ti all .ui.l fv. r\ (...n ,,10! 
 Hi'' inimovi-.il)l(-< III III., lial.l ■ i.|.| upon all i npr .\ .• n,.„i , ,„.| 
 iKl.litions inth.- w.iy ol IniiMiiii:^, »vhic'h ar.^ niihsr pMitU ni.i,].. 
 to th.-m ; hut if the prop. ,fy pnMs.s to n third pirf and >o(i 
 havf tosiie hini to r.ali/,. your 10 111. he Is ..ntitl. o I.- p.i i 
 wh.Tt hf> or prrviouM hoM.rs, not pcr^onallv I. mi,,.!, hav ■ .x 
 pfn.l.-<l on thf property in i npro' inj; II rii. . hi. tor .■ mnot 
 
 <Uinan<l that a certain porti.,:,,,!' th,. pro.,, ,u h vpoi iu'cit,..' 
 Iif ri.lea.srd ..n pa.Mi, n| oft h. \ alii,. ..f » .,t oorli..n unh-ss IImt.- 
 I- a Hprcitic at'r.cin.nt to ih.ii . ff.ct <■. tint tli,- hypothf. 
 «hall charj;.. tlir (.•a.p.rty in thf (.r.-port ion of,.,, much per foot 
 Otherwise th, uh<.|. r. mains h .iiimI iiiiti' the e,,m(.lete .li- 
 I harir- of the d, ht with it> inter, st and .■iecess,,n,.s. 
 
 ("are must h,- tulten, iH.wevt r. n..t L. allow t h.. interest to 
 fill int(. arre.irs. as y..nr hypoth, ,. will not c.irrs with it a pri- 
 vik'Ke f,)r m..r. than two y, ..rs arrears and the interest of th.. 
 current year. If, l,y a r. in..|,. , luiiie... Mi.'h an aeciinuilat i.. 1 
 occurred, it roiild only he protcte.l hy .1 re-istraiion last in 
 r.inkttjall i>t her el.-iiiiM heady rejrisfred. 
 
 KlXlis (I- 11 s I'o 1 ji 1:1 . 
 
 There a 'e, hro.'idlx sp akinn. thr,-.. kind, of hvpot hec 
 the Lcfjal. tic .Tudiciil ami tlic ("oiua.-it i,,nal 
 
 I^egal hypotheCis that xvhichn suits fromth.l.iwal,,;,, 
 as for instance, that created to secnr. the wifVs rif;hts a-iin-- 
 the hushand-s -roperty, that in favor <,f ,i,i lors a id intenli.-- 
 ai;..in.Ht tutors and r.urat,,rs, ;iud tint in fivo' of the Crown 
 These legal hypothecs are alway-; d.-r.o?.-,l \,s ,1 .cumeuts re-is 
 tere.l afxain.st the title and can always l-o d. ti' aitelv ascertaiie'd 
 Another instance ofh'Mal hypothe.. of K,-v,t\-v interest to 
 you is that in favor of Mutual Fire Insuran..e Compani,. .. Tii s 
 is created hy law upon the iminoveahles ,,1 1 1, . ilmuvd ni.-.i- 
 iion,.,! in the policy, to secur.. the pa\ :n,nt of Hr. a ^-- .s ,.n 'ut s 
 upon the depo-it notes. Hi:, "ot sui.Jcet to re-istratioa Ilk ■ 
 others and ranks iumediately after the municipal taxes an.l 
 lates. It theretore is Bomewhat dimeult to asr.t.rtain. hat a- 
 this form of iiisur i.ioe is not frequent, and is rarely n;,t wi'l. 
 in cities, the dan ■. - ..rtliis mortgage exisiinp: is re.n'ote. 
 
 U\?.os 
 
J«d dal hypothec results n-om the j»cl,:„ent of any 
 (ourt m thi8 Province ordering the payment of money, or from 
 any other jndioial act. These must be re^istere 1 and 'take rank 
 in the order of their registration. 
 
 Conventional hypothec resnlt. n-om an agreement. 
 This '« the form which your security takes. It is with this class 
 alone that this paper deals. 
 
 WHO CAN HYPOTHKlATE ? 
 
 As hypothec creates such a real right over the property as 
 may ultimately result in its loss and alienation, the law nAtu- 
 rally ^ives the right to those only, who by law are capable of 
 alieii.atiiig it. 
 
 Your borrower, therefore, must in the first place be the 
 owner of the property in some form. In this connection, it is 
 interesting for you to know that everyone who pretends to 
 hypothecate mortgage or otherwise charge any real property 
 to which he knows he has no legal or equitable title, is guilty 
 of a cr.r -e for which the punishment is a year's imprisonment 
 and a fine not exceeding one hundred dollars, the burden of 
 i>roof of the ownership of the real estate resting on him 
 
 Even when your borrower is unquestionably the owner, care 
 must be exercised; for if he be a minor or interdicted f.r drunk- 
 enness or insanity or for other reasons, his property can only 
 be hypothecated by his tutor or curator with the authorization 
 of the Court, given on the advice of a fa^.ilv counoil 
 
 If your borrower, on the other hand, be a married woman 
 she cau only hypothecate her property with the consent of her 
 husband or wanting it, with judicial authority. But it must 
 be remarked that the wife cannot mortgage h'r pr-.oertv far 
 us benefit, even with his authorization. ^Such a security woud 
 be quite worthless, even though the deed were silent on the 
 point, If It could be subsequently proved that the husband, and 
 not .he wife, really received the amount of the loan. This 
 would not, I think, apply to a case in which the wife receives 
 the money and subsequently applies it to the pay nent of her 
 
 th?s hea.?h. H • '"" '"'"^'" """•' ""' -charged from risk on 
 this head by the payment to the wife. The lender would n.,t 
 need to look further than the payment to the wife and e 
 aeknowledgoment. 
 
 Persons who are notoriously insolvents and trad 
 
 thirty days of their insolvency are lik. .._ 
 
 ting valid hypothecs upon their property. " Th 
 
 created in favor of the 
 
 mass of the thei 
 
 would of, coarse be prejudiced by the prcfc 
 
 ders within 
 'Wise incapable of gran- 
 is incapacity is 
 existing creditors, who 
 
 re nee 
 
 thi 
 
 s would 
 
K.veto..i,o ol-thfm. It wouMa,ilM,tl,i:,,M., t V. st:vn.t', ,., 
 the srcu.ity if the lender was UK.r.uU .,( t',- I, ,rr. .«■.,■;,,..„, 
 v.-ncv. ,Ste„h..„s„.., vs Lall..,n:, ,„1, .M. |.. IJ. ,; s. , '. :.iir, ,. n.l i, 
 h.'s been held th.t a hvputhee «r uUed hv the h .r-ower w',e-, 
 insolvent,!., replace another ample si curity h.-ld hv t heYnle. 
 and aceepted hy the latter in ^„.a faith t. assist tlie l.orr.u-er 
 VMll he upheld ilA.|..bvrevsLamontaKneR.J .!( ' S i -,s 
 
 If there he a def.et in t he t it le of the borrower, as erlain-u 
 unysnbse,,.ently to the n.akingof tho loan, whuhdelVe, 1„. 
 s..bse.,iu>ntly reetilies, .iu- hy,.o, bee takes elle..; from tlu ,1.1 
 '■f .ts reg.strafon, savm,. of eonrse the rights wi.ieh liurd par 
 Ks have ao.,,ured a^^ainst the property in the interim If 
 herefore, you find a flaw in your borrowor's tide sab.e,. ,.nt ' 
 ly to the hypothec, hue it n.ade right at once and von ' s -ru 
 r.ty will be good fron. the date of registration, with'tlu. ah .vv 
 n serve. 
 
 "•<h'-'l><"-...werheaeon.orat,oa,it v.onldbe wis. loa-e ■ 
 |nn.tspowertobyi,othe.ale .,nu that I he necessarv form , 
 l.ties re,,uned by its by-laws nav.- been eonudied with. 
 
 The chief .xe.ption t„ Iherul,. t !,„ t ; l„. owner alone ea. 
 h.v,,otheeate ,s nmd,. i„ t he . ase „f Fabn,,ne.,; and, as Fabriou. 
 oans :u-e„K,reor l-~ a va iled ,„ by t he insurance eon.p'ud^s 
 ..tins Province a w„r,l as to then- nature will not prove amiss 
 Iheyare made.nvn,u,.ofs„.,,i .visbn,, ,,f t he law 
 
 K C hureh, for rel.g.o.s purpose-. Each parish ,s a public ..or- 
 pnratio,,, governed by another corporation wit lUn it , f.rmed 
 
 of a committee or council, ..,„.is,in,.,f, be, ■uren.d the Churd, 
 U ardeus and styled the "Fabric,ne'-. The p. ,„.rtv.whieh thi' 
 (utTMntttee or l-d,ri,iue administers and whild, it' is s,,...! .1 v 
 «.ven power to alienate and hypothecate, nsnallv co.'si./. , t 
 the church, the pre.sbyf.ry, the s.-houls and -he com-tcr- Hnt 
 to enable a to grant .. v,. id hypothe -, all Canonical ite:..., a 
 t.ons n.ust be obeyed as to what < hey arc n.n,- l„. ascent;!,,,.,, 
 from the church itself . ,1„. eons-nt of the bi.l,,,;. mas- b ' .-iv,.., 
 and tho authority ofth pari .hl^.ncrs themselves beobtain-d • 
 |.meet.ngdulycalleo..r,hepurp,sc. Th, b, • -er an , ' , v 
 .s however, dtspensed wit h in large city pa riches lik. .M. ' 
 leul. .\n e.\act comjdialice wi-h ali therennind r .,tthe 
 nitions would have to be secured 
 
 It must not be understood that th, whole parish e;.„ b. tha- 
 "•.""""'■•■^""'' " '-^ ""!.- I'-t proper: v ,.b.,ve menti., 1 
 wuch the Faloi,u. itself governs. Inde:.,, n,.twin;"a:: ': 
 thee.vpress pemussion of the law, some authors dispute its 
 power to hypoth.cafe or alienate such sacred th^-,.-.- as 
 church or c nutery, claiming that thev are sacred i^ ."hei'' 
 
 lo It- 
 'll 
 
nature and c.mwt be .old. In reality, however, the sole fliffi. 
 tiilty would be in regard to the cemetery. There is a oo icur 
 reiice of opinion that before the sale the hypothecary creditor 
 would have to cause the removal of all th« bodie.s, accordinii to 
 the provisiouH of the law in that behalf. We can imagine the 
 dtl.Kht of some one v{ the managers present, with a good siz-d 
 find well stocked grave yard on his hand.s, endeavouring to 
 pacify a host of indignant relatives and friend.s. in an endea- 
 vour to realize his loan by unburdening It of itssacred contents 
 It 18 advisable to restrict your loans to Fahrique.'j to thoi»e in 
 which the money is to be u.sed for the construction of a church 
 sacristy, personage hous^e or jublic hall. In such easex it 
 unable to repay the loan from its revenues, the F.ibrique, with 
 the authority of the parishioners.-nay Jipply to the Parish'com- 
 missioners, i.e. the commissioners who erect parishes to au- 
 thorize the Church Wardens to levy the necessary s'ums on 
 the Roman Catholic freeholders of the parish. With this provi- 
 sion of the law, the creditor's security in reality becomes all 
 the real estate of the parish.which is owned by Roman Catholic* 
 This consent or authority, it is true, may be refused and 
 then the creditor's trouble might begin. Such a contingency is 
 however, remote. Fabrique loans are considered excellent 
 securities. 
 
 KOKM OF HYPOTHEC. 
 
 What is the form in which the Conventional Hypothec must 
 "oe made ? 
 
 The Province may be broadly divided, from a racial point 
 of view, into that portion which was settled originally by the 
 English, commonly known as the "Eastern Townships" and 
 that portion originally settled by the French The law makes a 
 distinction between these two districts as respects the form in 
 which the hypothec must be made. 
 
 In the counties of Missisrjuoi, ShetTord, Sianstead Sher- 
 brooke, Drummond and (iaspg, and upon lands elsewhere held 
 under the English tei:ure of n-e and common soecvge, hypo- 
 l!:ecs may be co.,.stitutt d by private writings, duly executed 
 beforf witnesses. 
 
 Upon lands thioughout the remainder of the Province 
 which constitutes the greater portion, the hypothec must be in 
 authentic notarial form. 
 
 Ill either case, these documents are prepared by either your 
 solicitor or your notary You have no responsibility in regard 
 to them, and it is unnecessary, with the limited time at my 
 disposal, for me to go into aet.iils as to their contents. Suffice 
 It is to say, that the sum for which the hypothec is granted mu.st 
 
he certain and determiiiefl l)y tlie d'H^d and the property 
 hypothecated must be fully described by its boundaries and by 
 itH olllcial number. 
 
 OKDKR OK KANK. 
 
 Having learnt, therefore, the nature of your hyj>othec, who 
 can enter into it and its form, the question which next con- 
 fronts you is —How is it preserved, and how does it rank with 
 other claims and hypothec:^ upon the property ? I imagine, h )w- 
 ever, that the securities which you take are without exceiLion 
 first mortgages, which to some extent lessens your int rest in 
 tliis respect. Even under such circumstinces. however, tliere 
 may be prior claims. 
 
 •'Registration" is the proceeding which gives etfect to 
 hypothecs and other real rights, and establishes their order ot 
 priority. 
 
 The Province is divided, for the purpose of the land tenure, 
 into sixty-nine registration divisions, each consisting ofa coun- 
 ty or part of a county and eacli containing a registry ofHce. 
 The registrar is an ofHcial of the government, who is liable In 
 treble damages for any act of fraud which he commits or per- 
 mits. Any mortgagor of land or hi.s agent or solicitor, who is 
 served with a written demand of an abstract of title by or on 
 behalf of the mortgagee, before the completion of the mortga- 
 ge, who conceals any dfed material to the title or falsifies any 
 pedigree upon which the title depends, with intent to defraud, 
 is liable to a fine or to two years imprisonment or both. And 
 he who withholds or conceals from the registrar any material 
 document or even information or gives false information or 
 who joins in any attempt to deceive him, is liable to three years 
 imprisonment without option ofa fine. 
 
 In eaih oflUce is deposited an ofticial plan of the whole 
 division, which is divided into lots each bearing an official num- 
 ber. The plan is accompanied by a book of reference, contain- 
 ing a general description of each lot, the name of its owner, 
 etc., the whole being commonly known by the French term 
 "Cadastre"— a register of lands. In this manner, identlficatioH 
 of even the smallest parcel of property i.-; easily obtained. 
 
 Every registrar is bound f) keep : 
 
 1. An alphabetical index of all documents registered as 
 ac'iuiring or conveying real rights ; 
 
 2. An index to the immoveables in the di\ision ; 
 
 3. An entry book of all documents brought for registra- 
 tion ; 
 
 4. A register in which the same are described in full ; 
 
 5. A register of the legal hypothecs of the wife, the tutor, 
 etc., and of judicial hypothecs ; 
 
''■;iI':Sr::r' •— -::^ - 
 
 1 rar 
 
 I 'I the rt'HiH- 
 r-},':-t.T. T-Ms ,H..tllv .,„'' V'V '^ ""■^' '^'''■"^>''-f"'l in this 
 '■'■'••'• '."' n...w,.,' ,' , . '" "-^ >""■■•■ -'-Ury or .soli. 
 
 absolutely cM-rt,ri„ nw-ti „.l .1,. "u-V"' '•''. ''" "'•''' ""^ '^'' 'f' •■^" 
 
 ^::^'%r-z:!:i:' "-'-;-•--« ■^^«:: 
 
 i!"i c^iii .■I! ,-iiiv time nhi,... I. p ' ' ■" «»f'-:es. 
 
 ^v.tem n-„i,„ ..],.,. .^ ."•«>P<^rty u, ..uesrion. It i.s this 
 
 -'■■'" '- ^' -is, , n^.. i :r ' '" '"'"' '" ^'"'^ '''■--"•'• I' 
 
 tui-s wliosr n-hts ii-.v,. h „ "S'-.t.uti')n Jijrainst crodi- 
 
 t re,,Mstered, th.y r:i.,|<, ,is betwe.Mi 
 
 re:;is ■ 
 
 1 their d ites. 
 
 number ot hypothecs be no 
 themselves, i„ the orcK-r ■, 
 
 ^vpotheeau'dniv.M .;;.,: :^;T"^^ 
 
 '•^iH- I, ..,,1, '"^\ ',x,„„|,ecary creditor his ovvu prof- 
 
 vou. .;•;,:;' :'::;.:;;--;-^'-;'--t U..S place b,.;..;.,, 
 
 >-..u.„ tor the order of hypothecs amon« rh..m.elves 
 |'HivilE(;ks. 
 
 ».;";-;;: ':;";:;i;r:"::";^;":;;z::r'-:;;- -■ 
 
 satisfied helore the rir=.f inHfwn •''"\"*^'*- '^'^ Un s,- must b.^ 
 
"oinc of |)l 
 
 
 .•>r»^ .III (J 
 
 • lllii ,,,s I' ,,|, 
 
 iW". 
 
 intcn >ts 
 
 I'f tlu- ( r,.,i 
 
 1 1: 
 
 Aj.cfl-,, 
 
 course tx n,,.t n,, 
 the ''osts is 
 
 
 ii.jt .. >.•.•! lain, 
 
 tiav,. ,,r..vi'd iii>t.,ii,.ie,. 
 
 ■'•■ The t-ApciKX ., 
 "■•'""• restriction. 
 
 .1. 
 II. 
 
 '•'-■I I'll., -s ,,! t 1 
 
 •■>'l t.M II.,. ,,,_,,„„ 
 '.•lnii!,,|,,,i. Tlii^ 
 
 •' ■'•- iii.e li ,,, ti,,, 
 
 11,11 
 
 i.illii Is c,| 
 
 uihiiint .i: 
 
 
 These two eJuu,s,i.,Mv,v,r ,„„., ;, . , , 
 
 p'-"i'^.ty Within six .„.„,„, ,.,',„,. ... : ; '■■ '' "'^■''"^ 
 
 <'"'• to retain their privilege '■' t ,.■ „u n,.,. j 
 
 ». The 
 
 «'-Vi<ei,s. ., ,,ftji;j„j, .^,j,j 
 
 '•- "-vest -^..niere 1^17,'' ''''''''"' '^ '" "'' 
 
 -'-^«'v-..>-,l..,nii,;^an<uri ItLh"" '''''^' •""" 
 '^••"M. re.,s,ran,.„, .v.s ,,n,l.al„v l.iuT.l r ," '\"""' '■^■" '"''^ 
 
 I''-''i:-tv.y.MM.i..,ra,;.U.n...'w,-r-^'' ''•''''■''' ■ — '•'> 
 
 niej,.n, ,,,,,1], .,, ,iaiinsu),,.h ,„. ■ I 
 "'-• exception o)' tiie »lie, ill's ,„ 
 
 "■ ilill"!, U-.-Ii 1„ 
 '■'l.si^lillii,,!,! ujtl, 
 
 b.- controlled '-> hnyinK .. at a n,. i "^rr '^ ' ^^■'■'''' ' -■ 
 
 Thesheri<f^..,,,,,,:i.,i:,,,^, .■';;- ■''',.„ I.earran.,-., 
 .1 tax. ^ "^ '"'VernnH-nt it is re..,IK 
 
 •'-• A.sses.^ments an.1 rMt,.s. Ties.. , ,. , , 
 th.-inakiig ot Chnrelies. el,. .■>■<.>,, ■^'•''^■-="i-Mt s /■ „• 
 
 Kates for five years ,„arre.-,rs ' """"' '■'' -^'""i-if-l 
 
 This privilege is n,,t suhjeet t,. r.-s-ist >.,h 
 .-es no inconvenience as res.iec s s h ■ ?"■ ""^' *''"■' '^"" 
 i" as much as they are k 3, ; '7 "' ""■"''''-' '— - 
 '-'-I".- can ouiteetisilvascerti ■„.;', ^^ "^'•""^"-" The 
 
 ^;Hi s. cure their payni;.'::;,:,-;" :!':;; '^r^' -'• "^'''' "•■'-.■ 
 
 !' i>^ -..ally stipuia, ,.„'";,;;7 ;';;;";;;;-';'"""""'- ■'»■ "- i-an 
 
 '■-r-ct dtirin^ the loa., n\2l ZX """"" '" "^ 
 
 On the otlier 
 
 ••', i'<'nders tli,. u'li ,|,. ,1, 
 hand, however. ClMinli 
 
 '/'f" t'llcff, 
 
 asses.-inent crear.-d d 
 
 lyuialln- posse. siun ottli- Ho 
 
 '■an (':ri h,, 
 
10 
 
 Mc purchaser; but the hypothecs created by him, while owner, 
 will not do so 
 
 When a Roman Catholic sells to a Protestant, the charcli 
 assessment, created before that date, continues to charge the 
 property and takes priority over any hypotheci Wtiich the 
 Protestant purchaser may create. 
 
 Unless convinced that the owners of the property to ba hy- 
 pothecated have been Protestants for many years past, special 
 enquiries should always be made by yoursolicitors at ths ottl ;e 
 of the Pabrique; and special search made in its boolcs to make 
 certain that no sucn privileged claim already exists against 
 the property. To that extent you can protest yoursalf. 
 
 6 The privilege, which comes sixth in order, upon ri-id 
 <:ntiitc, is the claim of Mutual Fire Insurance Companies for the 
 amount which the insured are liable te contribute, as already 
 seen. This claim, as we have pointed out, need not be regis- 
 tered ;and it is difflcult to see how one can ascertain whether 
 any such exists, beyond by enquiry from the Companies ot that 
 nature which may be doing business in that district. As a 
 matter of practice it is rarely, if ever, met with in respect to 
 city properties. 
 
 7. Seignorial dues. These > -e now practically obsolete. 
 They are insignificant if they still exist on any property. The 
 documents in the titK would fully indicate them. 
 
 8. The claim of the builder. The laborer, the workman, 
 the architect and the builder, each has a right of preference, 
 in that order, over a vendor and all other creditors, on the 
 building which they hava assisted in constructing, but only 
 upon (he additi'':ial value <jiven to the immoveable by the work- 
 done. 
 
 If you make a ioan upon a building in course of construc- 
 tion, you should either take a waiver of all these claims or 
 reasonable precautions that they are or will l>e paid as the 
 work progresses. Otherwise, they will take p> icedence of your 
 mortgage, even without registration, so long as the work con- 
 tinues, and will take like precedence, if registered, within 
 thirty days of its completion. The law requires certain notices 
 to be given by these claimants to the proprietor, but none to 
 the hypothecary creditor, so that the latter must be well on his 
 guard. 
 
 ». The claim of the vendor. The vendor has a privileged 
 claim upon the immoveables sold for all the price due to him. 
 the donor for the payments and charges stipulated in his favor, 
 and the co-partitioner, co-heir and co-legatee ♦"or the warranty 
 of the partitions made between them and of the differences to 
 be paid. 
 
11 
 
 The deed con.titutinKanyofthese claims, however mnnf 
 be registered within thirty davsofit. date inordor, , 
 the privilege. If,.... borrower ha. ace :;; c7h J i^'H -rhi'.: 
 that time, your adviser would of course insist udo, • J 
 tion before the loan was made, in order to ascVfr" wh'^t""" 
 Visional cla.„.s had been created under t hirse'tio: '' '"■" 
 
 10. The last privilege is that of servants' watre«inri,h^ 
 ofemployeesofrailwaycomoan.es employed for mrnn.K 
 When the .oveabl.s have proved insufflS'" Thrira pr K-?' 
 lege of no great importance. •"""■saprivi- 
 
 Such then are the claims whien can take precedence o. 
 your hypotnec. I have endeavoured to point out Jow vn . 
 as a rule, protect yourselves in regard to then"! ' 
 
 RIOHTS OF PARTIES DVRINO THK KXISTKN. K „K THE „ YPOTHK. 
 
 deht').V'i7fK''' ^°'"'^" ""*' '^^ h>'P"'hec does not deprive the 
 debtor of the property He continues to enjoy it and n Vv 
 ahouate ,t, subject, however, to che privilege of the hvoot i, 
 cary charge upon ,t. But neither the debror nor other ho ^r" 
 can w.th aview of defrauding ,.r of deteriorating the ^m no 
 veable, carry away or sell the wh^l. or any part of the b "d" 
 ings, fences or timber on it. If he does so, he is liable to Ave 
 years imprisonment. You may also sue him for he amount 
 of the damage, even though the claim be not yet payable and 
 If your judgment, when obtained remains unsatisfied vn ' 
 arrest the offender for d.bt and keep him Tn .H fn .n'u'i LTf 
 tisfies .t or until he ,nakes an abnndcnment of his es a e The 
 amount so recovered, of course, ,.ocs la reduction of "you 'cKTm 
 When your loan becomes due, either by the exnirv of ir 
 term or by the failure of the debtor to perfo'^^m a ,y o ^is ob 
 gat.ons under the deed, you have two reoour.es ,Lo .rdin ' . 
 oircumstances. ur.it^.s, .iccording to 
 
 If your debtor is st... in possession of the property you m-.v 
 .ue htm for the debt and accessories ; and having 'Si^J 
 ludgmen , se.ze and bring the property to saie as f.J any Jo m 
 merc.aldebt. Your claim ranks on the proceeds in T/ T 
 You have the right to attend the sal • and Uli '"''*"'!■''*''• 
 With the public. If your secuHtVtastln y Tos^et^'h^ 
 pubhc wm either bid u up to aa a nount sutficient o cover :«' 
 loan and the privilege, before it or you will b. .bl. to buv^ 
 at a nominal figure aud hold it for future sale at a profit o 
 .Vourloan and expenses. If you purchase the law pe'm t. -m 
 to retain the purchase price to the amount of your claTm , , 
 the distribution, provided you furnish the sheHfT wi hTbon , 
 You have to r-ay the costs, however "'fH;,, .k-^p i„, 
 
 t . .. I, ... I, < »i ( 1 1 flay M, 
 
1-J 
 
 Til. 0,.-n('''. -:il. (ll^rll.il•fJ■•^. I lr>> |ii- .(..Tt V i'rn-A. ill r'.'il 
 n-^lils • <)t m-iil iiiiicil in t 'u- coiidlt i uih o!" , i|.-, i'\ •,•[>! 
 
 I Sfi-v i! ii'li>i, for oxainj)!". a ritjii: mCwiv 
 
 .'. A r It'll i'^ I'f sf>i<;iiorinI diifs iihimII'. itisi ^vii'l'- iiit . 
 
 1 Viul, 'iiily where there m ii'> piir .'l,!!!!!, ri:liu <>( 
 < ini hyleiisiH, /tint is a lease of more tlir.i (I and liwstliiri Mit 
 \ f,irsi ; 1 1,,. oust .unary dower of tir- wif.' i)riMr ! . tin- li.i--li mdV- 
 ■I'.ith and ji xnliHt itution which his tint y<t ojxmkmI, tliif i-i, 
 his not |>;ih-!im; to the seeond deprce. TIk-i' sh')iii,| be si-ar lu- I 
 )i uluMi the title \h examined prini' t'> tlir luin 
 
 If, liuw'ver, t he property has pa-is ■ I in'o tli'hiiN .it i 
 ' liird p;ii-l . , yoii h.ive what is known as tin- h.Np >t hi'cary .ic- 
 'i.Mi ii{;,;iiist t he nrnperty. The tu'w ()\.-ni'r is rii.Tl.- ;i p.irts to 
 'he suit and the Jiid;inieiit orders him t > siirreii k^r if withii 
 fifteen days, in order that it miy he sold hy tho sh riff na pain 
 of a oersnnal enndeinnat ioM f.irthp d^h; If he prefer-i, h • in iv 
 pay the dcl.t ind aepes«..rics .i-id retain the property. I'ad.M- 
 any eireuinstaniis, the new owiie.- may be condemn.'d person 
 iliy to pay t h.- rents and |>i olit -, wliieli ho lias re. "jived sinee 
 I les.iviec of the .letliJi. and ,iii,\ dania;j:es he may Inve eaused 
 to the iiiiinovi-alile si.iee thit tim. lie also has the live f.jllou- 
 iiii;- dt'fene's : . 
 
 I. To .hiiiai.d Ihatyoii fiir.t ^. II t he parsoaal prop»Tty of 
 y.ur debtor. ,,rov|ded t h. def.Mid iiit indicates it to you and 
 id\ .mees the money i^' "■■s.j i>, to hi iug it to sale. 
 
 ■J. When you are in anj way peisonally bound to warrint 
 ins title, to ask the di>.Miissal of y mi aetion. This rarely oeeurs. 
 
 :{. To asK that he be sub-^t itut d iii;i;i your claims against 
 t iio.su Jiersonally liab'e 
 
 t. To demand that hr be pai.l u hat lie ..r previous h .'.ders, 
 exeept the pi ' onal debtor, liav- expiii.lcd o i tlie property in 
 improvements. 
 
 ■"•. If he has received tho j.i..;.. rty in payment of a elaiiii, 
 prior to tlie one sued on, as any of you miKht do, he can, bef )re 
 surrender, obtain from t ii.' plaint iff, seeurity that theiinmo- 
 wable will brinj;- a sntlbi, ..t pt iof t . ensure the payment of 
 ris jirivileged or prior elaiiii. 
 
 You have th' same ri^lit.s .,<■;,,,, eh IS. an.' bidding und.'r 
 tills laoeet din;; as uiider the former. 
 
 Ifanotli.r hy pot liee. uy erediloi lal,. . I loceediiigs ag linst 
 .In- propeity and brings it t . sab your 'i^.ot Iil'c, even tl .ugh 
 i'> term b _> unexpired, at one- ,_/,i,. /,k/.. i'lT, ^ due and ranks on 
 1 1. ■ prue; eds in its turn. 
 
 If llie owner of the prop,H-ty is m known or uneertaia and 
 ih.- '.apital ' r t wo yt ars ,: i icar- ,.f iM-i. st is due lo you.speei- 
 
13 
 
 .11 proceedings are provi.le.l whereby the prop.Ttv may 1m> 
 nrought tOHale in the ordinary .oiirne. 
 
 KXTl. (TION ..K l'KIVILK(iKS AND II M'OTII H S. 
 
 Of course wo are all aware tliat your liypotiuc will boconw 
 extinct i:pon the pnj nient ofthe dtbt and of it- i<ces-iori( •< 
 You will then have no further inttre.t in it. Y.-u are then 
 prepared to foreg . y„ur reeurity ; but it is well to k-n.nv that 
 your hypothec may become extinct and yonr security may 
 disappear for a variety of er..:8e«, even while vour loan may vet 
 ■ emain unpaid. The following is, I think, a cnmpl.te eniuner.,- 
 tionofthe various circumstinces under which su.h an .vent 
 can happen. You will notice that while th<.y are all possible 
 many of them are exceedingly remote possibilities. 
 
 In the first olace, if the property hvpothec.t mI is entirely 
 lost, the hypothec disippenrs. The only suppositions eases if 
 seei 9 to me, are wiien the land and buildings disapnear in a 
 landslide, as occurred in this Province some years ago or when 
 they are encroached upon and permanently destroyed by water 
 The mere destruction by fire ^f the buildings uoon the pnp -r 
 tj would rot cancel the hypothec, although it would rediic 
 the security. The hypothec would Rtill remain upon the land. 
 Loss bj' fire ia of course, as you arc all aware, protected by in- 
 surance paya.do to the mortgagee and most tire comprnies 
 include a mortgage clause in their policies setting forth the 
 rights of the mortgagee. Many interesting and difficult ques- 
 tions arise in this connection. I could not attempt to deal with 
 them satisfactorily in this paper and they might be reserved 
 tor eonsic'eration at a future date. 
 
 Your hypothec may also become extinct by the property 
 subject to it ceasing to be an object of commerce. This might 
 happen in an ordinary mortgage where the property became 
 a cemetery or served for thecrectionof a church. An excep- 
 tion to the rule, of course, would he where these properties 
 had been hypothecated, as such, by the Fabrique itself. 
 
 If the hypothec has been granted by one having merely a 
 life interest or a temporary interest in the property, it natu- 
 rally lapses upon the termination of his life or his interest. It 
 is not likely that any of you would lend to a holder l)y such a 
 precarious title. 
 
 Of course, if you as hypothecary creditor ijecome pur- 
 chaser of the property, confusion results between your two 
 qualities, and the hypothec is thereby cancelled. 
 
 Hypothec can be cancelled by an express renunciation on 
 your part, which ofcour.se would only be in the case of a spe 
 cial arrangement. Care must ^--ever be taken that you give 
 
u 
 
 'I ' lii< it ri n.iiji J;Ui(>:i (it the liy ji')! Ii'i- l)> > '>iir aol n) i. K.tr i.l 
 NtiiiKc. iCi port ioi, (if till- |)rii:>crt,\ vviis di-slr-'Vi' 1 l>v ll-i- an 1 
 .\cf.i collcctfd thi' ii)RiiraMC'c« 'iuhIc jiiyalilc tn yn irs"'f;m m >rt - 
 t;iiH<'i' ••iii'l tln'ii liniHied it to tlic owner to be clt>vnl-il by hi n 
 to !•» siuiii (. t he |n i)|)crty. yo'ir Iniiot ticfirv chiltii wniM I) • 
 <i'iini(l(ii (I to lie icd'.iced by th»' nmoiint that vnu rcciv-' ; ni'l 
 liii' • lie iii.iiu'.\ so roi'dved and paid, yon cuilil o ily la :k Miib. 
 St ((ui'iitly to nil otluT bypothcoary crcilitor ;, 'ben r.'gist -red. 
 Yoi: r tu'('('[itaiH'i' of insiiranco moneys nti ler m nil ciroifn-it itic>^ 
 woiilii operate ns a tacit reniisHJon of yo ir bypotboe to t b it 
 extent So lonjj as any portion of your lo in or it < aoeessorii-s 
 or rosts rt-niaiiied unpaid, your ori>;inal security woiillc );iti- 
 nne over I be wbole anio;int of tbe property to secure f be s;iiii 
 still due. A solution of t be dllfieiilt y woullbj t ) a'lo.v I be 
 nioiicv to remain mtbe biinls of tb • itisurinr-i cini;) inv itid 
 yive I lie (((Dtrnctor mi t be ouicr -i guarantee t Irityou will Mli"- 
 late it on eonipletii.n ,,1' \v)il< to tlie extent ofits amount 
 
 In t bis cunneet ion, t bis point is to be noticed. If your loin 
 IS due and at tbe sinie time your company becomes tiie debtor 
 ui your borrower under a policy for a lire loss, the two claims 
 become coiDpensated one with the ot her to the extent to wliicli 
 tbey concur. You would of course avail yourse'f of thiss-t ott 
 and w luld not pay to th" insure.; ibo amount due hi:n, but 
 w'.nld ajiply it upon bis indebte '■ s to you. ShouM y^:l pay 
 bini tbe loss by an oversif;lit. however, your hypothec would 
 become discbar;;ed to tlie i xtent of tbe payment you iv.ade 
 him. 
 
 Of course a slerilV's s,l(> or otiier sale of like etfert, oi 
 t xprojiriiition for publii purposes t icels your bypotliec, but 
 ycu ret,, in your recourse upon the price of the property Just as 
 li you had yourself broUKhl it t.. sale. Tbe law requires liie 
 lUyisliitr or tbe Prothoiu taiy lo notify yon of any such dispo- 
 s.ilofit. It will always be your duty to be reprc :ented at the 
 sale tv, make certain that the property is not sold for less 
 tliaii tl:e amount of your claim. 
 
 Ajiain, tbe hypothec may be dis(bar;,'ed iiy tbe owner i)y a 
 proceeding called " coi.lirinat ion of title " under which an 
 ewner can obtain a clear title by (.iviiig not i( c of his ainilita 
 lion to the Court in the Oilicial (i; ;:ctli- ar.tl in tlie French and 
 Ijiiilihh newspapers in the locality. 
 
 Me ran only obtain discharge, luiwevei, upon paying the 
 .1 mount I'or which the property is cliaiyed. 
 
 I do not presume tl-.it in well rei;ulated orticcs it is possible 
 tliat a loan should be allowed to remain o'erdue for a term of 
 tin years, but .should this happen, an acquirer of the property 
 ii; ^uu 1 faith, prescribes tlie ownersliij), and liberates himself 
 
I> 
 
 t'lon. all I 111' liyi'otlu'CH m ili.> ixpir y ol th ir i t-iin, liy ,111 . .h'r' ■ 
 t;(i pohM^Hioii ill virtiif of Niicli I It if (luiiiik; t ii.a I'Tiii. insiuli 
 »'ano liowtvir, i-ii<li III w li'iiiit I- u.iiy In- iihlij^i •! t , ruriiisli .1 
 ri'iit'wal liilfiit li,s(j\\ii (()'! 'liiM ]irt— I rii'iiiiii nf fuiiiHi>. ih 
 notito Ciuor of 1 lir |urM,ii:il (1< bior, wlio ri'iuaun pi rsoiiiilU 
 bot.iul all! Cnjiii wlioiu flit' ili lit iimv ptlill lin 'ii- )\ itiiI lor .1 
 tt-rin of t liirty \>ar^. Ii is wt II. t lur*!' nf, t >r li 'i mwi 1 s i > 1 >■- 
 ({iiirt- Hi.l).'-( i)i.t It I 111 rliascrM to ii^-mit.' |nis.ii);l i',,i- thi' ilcli: 
 This an a iiiattir > I'I'.ut, is usually ilmif. 
 
 A II liiii.s lar-f cniiiK (■!( (I Willi tills hraiK li ol il,, m;Ii). it 
 lia.slattjy uiistn in iij;ani to II iit» lu -oii Mi<i, .M(iiiinal 
 VVlii-n it ami t iio |iro|H itics lioi.t II.;; oil il wii-f ..lill i.iiiu laml. 
 a li.\ j)otli« c was fit ati (I on t III' V. Iioic hut liiiiKi il lo -0 mu/h 
 I « r toot tfjtliiililo t Jif owiUT to In !■ .my jjoiii. M iic uiiuhl sill, 
 li\ I ay il h: the jifopoi tiou of tlu- loan wil il u hicli il was, m |,,ir. 
 til. iilar (liar;;! (J. A sLlbsfijueiit owi.cr ot t hi' j)ro|ifrty inaiki'il 
 off Hu'iM' soil St I til dfdii'ati il it to the puhiii; ami sold lois ..i 
 Its liiH- as Iroiiliii^ u| on It . ill ( at li i asii lii-iharj^iu;; 1 lii- .•ncn i 
 na(;i' i:h i<iovi(U(l. 'Die roadwav was inaiio, si.iiwalUs laid iiid 
 dfii ins j)i:l ill hy t ho nuiinci|)aliiy. lloll^L•s were 1 .,ii-.t met ..d 
 liuiitii.^ 01; it, Iroiii tlid lo I'll. I. \\ li-n a siihscijiii'iil pur-, li i^i r 
 oftiie tialaii*; - t' tlio iioil^;;,;^ luir.cto rcaiizo iiioiiit, hi' 
 t'ouiiil that tin; only SfLUiity liu had lit'l, was what was appa- 
 rel. tly a jiublic htrfft. Ih ilio I'liMiiiiy litit;atioii, llie iiue.st;oii 
 lor t lie I'liiit was whtilitr ihu ownor oitlm land hy^xitlu'i-attMi 
 L'uuld validly dfdii ate a po: t ioji of it to public piirpo-cs ind 
 thertby canctl t lu; liypothic upon it Reason ami iNiuits 
 answer in the nt j;.iii\A , but judj^is liaU so lar ditlVT-d on vi- 
 rioii.s pliasts of llie lit i^ution and t here is yet 110 liiial jud;; 
 mci.l of a Court of last re.->ui I . It is await'd uiili -.iin. 
 interest. 
 
 OTIIKH KuH.Ms uF lu:.\ I. L.^l.Vl'K SKrf Kl I' Y . 
 
 To give the lender greater si oiii ity, jiarticuiarly in cases 
 where in return for a iiigh ratt- .)f lutLiest p.iid, he talies soiiu- 
 risk as to the value of the jirojierty or as totlie i haracler of t he 
 borrowt r, notaries and olliers liave devised other forms iiul 
 made use of other conlracts, some of theui ,ui uiitried. Oihets 
 are so or.erous upon the borrower that if the security otl'end 
 be ^ood,he will i,ot subn.it to tliciu. One or two of t heie follow. 
 
 Hypothec wnn si shknuki* ri.i-.uoK. Hypothec dof.s not 
 ^ive the lender the ri^ht Lo ilie possession ot the iniinov - 
 able ; so that pending the suit for the recovery of the deht, 
 the borrower receives the reals and is not, perhaps, paying the 
 interest. If, h.owever, the propeity be hypotheoated and y,/. W- 
 
 r!' 
 
Id 
 
 {jril, ill u<Mili<>n, fottvriin- thr l„ III, with a »ti\n\\iiUim th.U Che 
 pledKi' will ohlv be exerclHi-d In c i^e of dtfHult In paying prlii- 
 <i|>al oriiiurt'st, th.- |,.nc|..r tn%y in such evi-nt t tke p >sii .i4l(,i, 
 of the ifiimovfnhUf ntul recoverthe ri-ntu nnci apply tho ii in piiy 
 nifiil to the extint of the debt. <),i the expiry of tho term, 
 however, he eannoi retain possoiiHlon, but mu(«t bring Htiit and 
 sue, UN on hypothec. 
 
 ri,i:i.(*!:. ThiH ylveM the lender actual ponHPHsiou. The 
 lender reieiveH the rent and applies it in paymonl f the int^'r 
 fNt and prlneip.il. Thure Is no reason why tho pr.)p <rty sh )ul<' 
 not be leased by the lender to the borrower m an unnu.ii rent 
 to cover intercHt, InHuranre, taxes and annual ehar^u« of nil 
 kindH In thlHCrtKealno Huit tnu.Ht he brouRht to renlizo tht- 
 loan. 
 
 Hai.E witk kkiht o; itK;.K.MiTi<)\ Th ow.iersh ■> Itijli 
 •nuy bH transfHrrt'd to th- h-ndur an Heourity, under a sale 
 with riRl.t ..rnden. .„, within a cert iln time. If thin term 
 flipseH Without rep 'It by thoborrowor.the lender beeomcH 
 
 »;>-«. favli,, the owner of the property. Few borrowur« will 
 Hubmlt to this. 
 
 In a paper of this chnraeter it Is somewhat ditHcult to bo 
 abbreviate the principles of t h« law as to properly condense m. 
 large aoubject within comparatively ho Hmall a space. I fear I 
 have given you an imperfect idea ol many points. 
 
 1 fear too, that mutter to weighty, into which neither wit 
 humor, path'w nor action can be infused, may prove a source 
 »f mental int'lgeHtion to -<oni.' of my friends present. A panacea 
 lor ail such ills is : -"Always consult vour legal adviser " 
 
I 
 
tsi^j^ ^-ji^^f.'-jrer^ J!. '' ^ * feC ~j-^T:-^'*T.-.i-^Ji'-'»Sg£^ 
 
The Trust and Loan Company 
 of Canada. 
 
 UNCORPORATED A. D. 1845 BY ROYAL CHARTER) 
 CAPITAL SUBSCRIBED $7,300,000 00 
 
 iMoiley to ler?d or? u'ity Propi-rly aiul on tht- isiw- 
 
 rer^der vaUie of IJfe Iihsui-aiKc Policies. 
 Address :-THE COMMISSIONER 
 
 THE TRUST AND I,OAN CO. OF CANADA 
 26 St James Street, Montreal, Que.