315Effect of repayment on ejectment by mortgagee

315 Effect of repayment on ejectment by mortgagee (1) This section applies if a proceeding for ejectment is brought by a mortgagee for possession of mortgaged property and no proceeding is pending for— (a) foreclosure of the mortgagor’s equity of redemption; or (b) redemption of the mortgaged property. (2) If the mortgagor appears as a defendant in the proceeding and pays the outstanding amount to the mortgagee or into court, the amount paid is taken to be full satisfaction and discharge of the mortgage. (3) On the payment of the outstanding amount in accordance with this section— (a) each mortgagor or defendant in the proceeding is discharged from liability for the amount; and (b) the court must order the mortgagee, at the mortgagor’s cost, to— (i) give the mortgagor a discharge of the mortgage under the Land Titles Act 1925, section 101 or transfer the interest of the mortgagee in the mortgaged property to the mortgagor; and (ii) give all documents of title to the mortgaged property that are in the possession or control of the mortgagee to the mortgagor. (4) This section does not affect a subsequent mortgage or encumbrance. outstanding amount, for a mortgage, means the total of— (a) the amount of the principal of the mortgage that has not been repaid; and

(b) the interest payable under the mortgage; and (c) the reasonable costs and expenses of the mortgagee in the proceeding for ejectment.