Does a mortgagee have to be placed on inquiry as to whether an injury occurred when the first cheque was returned for insufficient funds?

Case law indicates that when the first cheque was returned for insufficient funds in November, 2003, the mortgagee should have been placed on inquiry as to whether an injury had occurred. See: Mahan v. Hindes 2001 ABQB 831 at paragraph 32. At that point it either knew or ought to have known of the injury. However, even if that is not the case, the evidence makes its clear that the mortgagee had actual knowledge of the injury, at the latest, by January, 2004. At that time the mortgagee knew that the mortgage was not being paid, that it had been injured, and that it had the right to accelerate the mortgage and seek a remedial order.