Is surrendering a first mortgage security put a trustee in his place?
Alberta, Canada
The following excerpt is from Hollingshead (Re) (Trustee of), 1999 ABQB 355 (CanLII):
In Cracknell v. Janson (1877) 6 Ch. D 735, 46 L.J. Ch. 652, 37 L.T. 118, 25 W.D. 904, the court held that the surrender of the first mortgage security puts the trustee in his place and the trustee may as a secured creditor execute against the property for the benefit of all creditors.
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