Restriction on mortgage of future property
45 Restriction on mortgage of future property
A provision in a mortgage to the effect that the mortgagor creates or agrees to create a mortgage over or in respect of property or a class of property that is to be, or may be, acquired by the mortgagor after the mortgage is entered into is void.
However, this section does not apply:
to a provision in a mortgage of property that is to be acquired wholly or partly with the credit provided under the credit contract secured by the mortgage; or
to a provision in a mortgage relating to property or a class of property (whether or not ascertained) described or identified in the mortgage; or
to a provision in a mortgage relating to goods acquired in replacement for, or as additions or accessories to, other goods subject to the mortgage; or
to any other provision specified by the regulations.
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