Declaration on loan by trustees. of collateral security for the running balance of his account, the banker cannot include that sum in the banking account, and charge compound interest upon it (y), for, as regards it, the parties occupy the position of mortgagor and mortgagee respectively. Where the mortgage money was advanced by trustees it was necessary until lately to insert at this point a declaration that it belonged to them on a joint account in equity as well as at law and that, consequently, the survivor should remain entitled in equity, as well as at law, to the sums secured by the mortgage deed. The reason for this was that the courts of equity assumed, in the absence of a distinct statement to the contrary, that where two or more people lent money jointly, it could not have been their intention that the right to it should belong exclusively to the survivor, but that, although they took a joint security, each meant to lend his own money, and to take back his own (2). But now the Conveyancing Act, 1881, has enacted (a) that where the mortgage money is expressed to be advanced by or owing to more persons than one out of money belonging to them on a joint account, or where the mortgage is made to them jointly and not in shares, the mortgage money for the time being due to those persons on the mortgage shall be deemed to be and remain money belonging to those persons on a joint account as between them and the mortgagor; and the receipt in writing of the survivors or last survivor of them, or of the personal representatives of the last survivor, shall be a complete discharge for all money for the time being due, notwithstanding any notice to the payer of a severance of the joint account. It is not desirable to state in the mortgage deed that the money lent is trust money, for that would have the disadvantage of affecting every person dealing with the property with notice of the trust, whilst the advantage arising from the rule that an acknowledgment of title by one of several mortgagees who appear on the face of the mortgage deed to be both. joint-tenants and trustees, does not keep alive the mortgagor's right of redemption (b), is too remote to be of much value. insure. If the property consists of buildings, the mortgagor Covenant to sometimes enters into covenants to repair, and to allow the mortgagee to enter and view the state of repair, similar to those contained in leases. He should also covenant to insure all buildings and fixtures on the property; to keep them, so long as the mortgage lasts, insured for an amount equal at least to that of the sum lent; and to apply all moneys which may be received under such insurance in repairing any part of the premises, or fixtures, which may be destroyed by fire. The mortgagee has, even without this proviso, a right to insist upon money received under the insurance being laid out in repairing the mortgaged houses or buildings damaged or destroyed by fire (c), but he cannot, in the absence of agreement, compel the application of such money to the repair of fixtures removable by a tenant (d), except, perhaps, where the mortgagor has received money under an insurance which existed before the mortgage, and which he has kept up in pursuance of a covenant to that effect (c). The mortgagor's covenant to insure was formerly followed by a proviso that, in default of his keeping the premises insured, the mortgagee might do so, and add all money thus expended to the principal sum lent. But this has been rendered unnecessary by the Con (b) Richardson v. Younge, L. R. 6 Ch. 478. (c) 14 Geo. II. c. 78, s. 83; Ex parte Goreley, 13 W. R. 60. (d) Ex parte Goreley, 13 W. R. 60; Lees v. Whiteley, L. R. 2 Eq. 143. (e) Garden v. Ingram, 23 L. J. (Ch.) 478. ̧ Covenant to veyancing Act, 1881, which (f) gives a mortgagee, if gage deed. All If any part of the mortgaged property consists of renew leases. leaseholds which the mortgagor has a right to have renewed, he should next covenant that he will exercise this right, if necessary; for otherwise the mortgagee cannot compel him to renew, but must himself pay the expenses of any renewal, and may then reimburse himself by adding the sums thus expended to his principal (in which case they will carry interest), (f) 44 & 45 Vict. c. 41, s. 19. and may also hold the renewed lease as a security both for the sum originally advanced by him and for that expended in obtaining the renewal (g). Sale. We have already seen that foreclosure is a slow Power of and expensive process, especially where there are several incumbrances on the mortgaged estate. Hence it became the almost universal custom to insert in the mortgage deed a power for the mortgagee to sell the property, and thus realise his security. As between the mortgagee and the mortgagor this power was not to be exercised until there had been some default on the part of the mortgagor; but since a purchaser could not be expected to go into the question whether the power to sell had arisen, it was provided that, as regarded the safety and protection of a purchaser, no sale purporting to be made in exercise of the power should be invalidated by the fact that the mortgagee ought not to have sold. So far back as the year 1860, an Act was passed (h) which provided that a power of sale by the mortgagee, with its ancillary provisions, should be deemed to be contained in every mortgage deed executed after the passing of the Act, subject to anything to the contrary contained in the deed. But the power of sale which the Act gave to mortgagees was so framed as to be less advantageous to them than that usually inserted in mortgage deeds by conveyancers, and consequently, the statutory powers were seldom relied upon. The Conveyancing Act, 1881 (i), has repealed the enactment previously mentioned, except as to anything properly done thereunder, and substituted new statutory powers of sale and other clauses. These are substantially the same as those approved of by conveyancers, which, consequently, may now be properly omitted. (g) Lacon v. Mertins, 3 Atk. 1, 4. Conveyancing The Act applies to every mortgage made after the 31st of December 1881, except so far as its application appears by the mortgage deed to be limited or excluded. It provides (j) that the mortgagee shall have power, when the mortgage money has become due, to sell, or to concur with any other person in selling, the mortgaged property, or any part thereof, either subject to prior charges or not, and either together or in lots, by public auction or private contract, subject to such conditions as he thinks fit, with power to vary any contract for sale, and to buy in at an auction, or to rescind any contract for sale and to resell, without being responsible for any loss occasioned thereby. As between the mortgagee and the mortgagor the former is not to exercise the power of sale conferred by the Act unless and until notice requiring payment of the mortgage money has been served on the mortgagor, or one of several mortgagors, and default has been made in payment of the mortgage money for three calendar months after such service; or unless some interest under the mortgage is in arrear and unpaid for two calendar months after becoming due; or unless there has been a breach of some provision contained in the mortgage deed, or in the Act, and on the part of the mortgagor, or of some person concurring in making the mortgage, to be observed or performed, other than and besides a covenant for payment of the mortgage money and interest thereon (k). The Act goes on to provide (1) that where a conveyance is made in professed exercise of the power of sale conferred by the Act, the title of the purchaser shall not be impeachable on the ground that no case had arisen to authorise the sale, or that due notice had not been given, or that the power was otherwise improperly or irregularly exercised; but any person damnified by an unauthorised, or improper, or irregular |