A mortgage covenant requiring the borrower to 'repay' a stated sum, read together with a memorandum of common provisions securing amounts payable under a secured agreement, does not create an obligation to repay funds fraudulently disbursed by a broker pursuant to a forged direction that the borrower never authorised. Ratification of a fraudulent disbursement requires the borrower to have known that the direction was forged. A trial judge may resolve a disputed factual issue involving serious allegations by reference to the onus of proof, without making a positive finding that either witness was lying, where the evidence from both sides is insufficient to produce actual persuasion.
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