Right of mortgagor to redeem goods
113 Right of mortgagor to redeem goods
Where a mortgagee takes possession of goods subject to a regulated mortgage, the mortgagor may redeem the goods by discharging his obligations under the mortgage in accordance with subsection (2).
A mortgagor may exercise his right under subsection (1) to redeem goods subject to a mortgage by paying or tendering at any time before foreclosure or sale by the mortgagee—
where the mortgage relates to one or more regulated contracts—the net balance within the meaning of section 103 due to the credit provider under each contract at the time of payment or tender; and
where the mortgage secures payment to a person of a debt or other pecuniary obligation arising otherwise than under a regulated contract, the amount payable to that person in respect of that debt or obligation at the time of payment or tender—
or the amount payable under and secured by the mortgage, whichever is the lesser, at the time of payment or tender.
Where a mortgagee takes possession of goods subject to a regulated mortgage and, at any time before foreclosure or sale by the mortgagee—
where the mortgage relates to one or more regulated contracts under which the debtor is in default—
the default under each such contract is remedied;
the amounts that would be due to the credit provider under each such contract if the default had not occurred, are paid; and
the enforcement expenses (if any) in relation to the exercise of the right to take possession of the goods are paid; and
where the mortgage secures payment to a person of a debt or other pecuniary obligation arising otherwise than under a regulated contract, the amounts payable to that person in respect of that debt or obligation at the time of payment, are paid—
the mortgagee shall forthwith return the goods to the mortgagor.
Where a mortgagee returns goods to a mortgagor by reason of his compliance with subsection (3)—
the goods are received and held by the mortgagor subject to the mortgage; and
the mortgage and any contracts to which it relates shall continue in force as if the mortgagee's right to take possession of the goods had not arisen and had not been exercised.
In subsection (3), the default does not include—
a default in observance of the time at or within which a thing is required to be done; or
a default in payment of an amount that became payable earlier than would have been the case if there had been no other default.
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