Ontario Barrister and Solicitor Practice Exam

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Can a Bank include all fixtures and chattels in the security for a mortgage against a restaurant?

No, only the property itself is included
Yes, but only with explicit permission
Yes, by taking charge over specified inventory and assets
No, laws prohibit this action

The correct answer is: Yes, by taking charge over specified inventory and assets

A bank may include fixtures and chattels, or movable property, in the security for a mortgage against a restaurant by taking charge over specified inventory and assets. This is because fixtures and chattels can be considered as part of the restaurant's assets and can contribute to its overall value as collateral for the mortgage. Options A and D are incorrect because they limit the scope of what can be included in the security, while option B is also incorrect as it suggests that explicit permission is needed when in fact, the bank can take charge through the mortgage agreement.