3 May 2010
MAYO-SMITH & ANOR V RAYNAL HC AK CIV 2009-485-000570
- Citation
- openlaw-a46ca1ff_7c49_4205_9a74_16e46c13d815.pdf
- Court
- High Court
The mortgage was given within the specified period while Golden City was insolvent and was not a substitution for an earlier charge because the February 2007 agreement did not create a charge giving priority over other creditors (clauses construed as profit-sharing and trust for interest in the context of joint venture, not security); the respondent failed to establish a s 296(3) defence of bona fide alteration of position; accordingly the mortgage is set aside.