42(1)In this section and in section 43, “bonus” means the amount by which the amount secured under a mortgage exceeds the amount actually advanced.

42(2)Where land is subject to a security interest,

42(3)Security holders shall be paid the amount of principal and interest outstanding against the security out of the market value of the land and any damages for injurious affection payable in respect of the land subject to the security, in accordance with their priorities, whether or not such principal and interest is due, and subject to subsections (4) and (5).

42(4)Where the land is subject to a mortgage and the amount payable to the mortgagee under subsection (3) is insufficient to satisfy the mortgage in full,

42(5)For the purposes of subsection (4), “purchase-money mortgage” means a mortgage under which the vendor of land takes land sold to a purchaser as security for an obligation by the purchaser to pay to the vendor a sum on account of the purchase price of the land.

42(6)No amount shall be paid in respect of a bonus until all security holders have been paid all amounts payable other than any bonus.

42(7)Subject to subsection (8), where land held as security is expropriated in part or is injuriously affected a security holder is entitled to be paid, to the extent possible in accordance with his priority, out of the market value portion of the compensation and any damages for injurious affection therefor, as the case may be, a sum that is in the same ratio to such portion of the compensation and damages as the balance outstanding on the security at the date of the expropriation or injurious affection is to the market value of the entire land, but the sum so determined shall be reduced by the amount of any payments made to the security holder by the owner after the date of expropriation or injurious affection.

42(8)Where the parties to a security instrument have agreed that, in the event of an expropriation of or injurious affection to part of the land subject to the instrument, compensation in respect of that land shall be received and dealt with by the parties or any one of them in a manner set out in the instrument, compensation in respect of that land that the parties to the instrument are entitled to under this Act shall be paid in the manner set out in the instrument, and payment by a statutory authority in conformity therewith discharges the obligation of the statutory authority to pay compensation to the parties to the instrument in respect of the expropriation of or injurious affection to that land.

42(1)In this section and in section 43, “bonus” means the amount by which the amount secured under a mortgage exceeds the amount actually advanced.

42(2)Where land is subject to a security interest,

42(3)Security holders shall be paid the amount of principal and interest outstanding against the security out of the market value of the land and any damages for injurious affection payable in respect of the land subject to the security, in accordance with their priorities, whether or not such principal and interest is due, and subject to subsections (4) and (5).

42(4)Where the land is subject to a mortgage and the amount payable to the mortgagee under subsection (3) is insufficient to satisfy the mortgage in full,

42(5)For the purposes of subsection (4), “purchase-money mortgage” means a mortgage under which the vendor of land takes land sold to a purchaser as security for an obligation by the purchaser to pay to the vendor a sum on account of the purchase price of the land.

42(6)No amount shall be paid in respect of a bonus until all security holders have been paid all amounts payable other than any bonus.

42(7)Subject to subsection (8), where land held as security is expropriated in part or is injuriously affected a security holder is entitled to be paid, to the extent possible in accordance with his priority, out of the market value portion of the compensation and any damages for injurious affection therefor, as the case may be, a sum that is in the same ratio to such portion of the compensation and damages as the balance outstanding on the security at the date of the expropriation or injurious affection is to the market value of the entire land, but the sum so determined shall be reduced by the amount of any payments made to the security holder by the owner after the date of expropriation or injurious affection.

42(8)Where the parties to a security instrument have agreed that, in the event of an expropriation of or injurious affection to part of the land subject to the instrument, compensation in respect of that land shall be received and dealt with by the parties or any one of them in a manner set out in the instrument, compensation in respect of that land that the parties to the instrument are entitled to under this Act shall be paid in the manner set out in the instrument, and payment by a statutory authority in conformity therewith discharges the obligation of the statutory authority to pay compensation to the parties to the instrument in respect of the expropriation of or injurious affection to that land.