Can a mortgagee obtain judgment on a personal covenant with interest at the mortgage rate?
British Columbia, Canada
The following excerpt is from Heller-Natofin (Western) Ltd. v. Carlton Developments Ltd., 1979 CanLII 602 (BC SC):
Counsel for the respondents relied upon the decision in Edelweiss Credit Union v. Boehm (1978), 1978 CanLII 264 (BC SC), 8 B.C.L.R. 51, 6 R.P.R. 349, a decision of van der Hoop L.J.S.C. In that case the mortgagee had applied for judgment on the personal covenant with interest at the mortgage rate. The learned chamber judge held that the mortgage did not provide clearly that interest on any judgment on the covenant should run at the mortgage rate and allowed a judgment with interest limited to the statutory rate of 5.
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