A mortgagee's costs of resisting an appeal by the borrower may be incurred 'in connection with the enforcement' of the mortgage where the appeal concerns matters that, if successful, would reduce the secured debt. A contractual indemnity clause requiring the borrower to pay 'all legal fees on an indemnity basis' in connection with enforcement of transaction documents plainly and unambiguously provides for indemnity costs. However, a guarantor who is not a party to the loan agreement will not be ordered to pay indemnity costs where the guarantee is not in evidence and its scope has not been addressed in submissions.
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