A registered forged mortgage with an all-monies clause referencing an external forged loan agreement secures nothing, following the Tsai line of authority. Solicitors acting for mortgagees must be aware of this risk and either draft mortgages containing specific sums or advise clients of the exposure. The Consumer Credit Code operates as a statutory exception to indefeasibility where the mortgagor did not sign the mortgage. Where a bank cheque is issued from misappropriated funds, an innocent recipient who gave consideration in good faith has a defence to a claim for money had and received.
The full text is available to signed-in members, including the 44 later cases that cite this judgment.
7 of the 44 citing cases carry a classified treatment. How each court treated it is available to signed-in members.