This process may be repeated as often as any other lien creditor or redemptioner is disposed, subject, however, usually, to the final redemption taking effect within the time allowed as from the date of sale. In some States wherein the mortgager may redeem within a specified time from the day of sale, he may remain in possession of the property until such time has elapsed. Subject to such general conditions, existing in some of the States now about to be referred to, rather by inference than by a specific provision in the regulations, we will now classify the States wherein redemption can be claimed, under various headings showing the time following the day of sale, within which redemption is allowed, and the rates of interest payable on such redemption on the purchase money, or the amount for which judgment was granted. We shall, where special conditions exist, make reference to them. In Connecticut the limit of time for redemption rests with the Court. This is usually fixed at from two to six months, and if the debt be not paid within such period the equity of redemption is extinguished, and the property belongs absolutely to the mortgagee. In Nevada and Utah (and also in Oregon and Tennessee, referred to later) redemption cannot be claimed where the title is a leasehold of a shorter term than two years unexpired. Subject to this exception, property in Nevada, Utah, Colorado, and Vermont may be redeemed within six months from the day of sale, the interest payable being-in Utah, 6 per cent; in Vermont, 6 per cent; in Colorado, 10 per cent; and in Nevada, 18 per cent. Twelve months is the most usual limit fixed. This applies to Iowa, Michigan, Missouri, and Minnesota, in which States the interest payable is taken at the same rate as is provided for in the mortgage deed or deed of trust, but as regards Minnesota the rate is not in any case to exceed 10 per cent, and in Missouri redemption is limited to sales made under a trust deed without a foreclosure suit, and then only provided that the beneficiary in such deed of trust, or his legal representative, shall have been the purchaser. are: Other States included in the limit of twelve months for redemption Illinois, Wisconsin, and the Territory of New Mexico, in which the rate of interest is limited to 6 per cent; South Dakota, where it is limited to 7 per cent; Indiana and Washington, where the limit is 8 per cent; Kentucky, Oregon, and Wyoming, where it is 10 per cent; The time limit of twelve months also applies to Alaska, Idaho, Maine, Massachusetts, Montana, and New Hampshire, but we do not find in the references we have consulted any allusion to the rates of interest payable. In Alabama and in Tennessee two years are allowed for redemption, the rate of interest in the latter State being 6 per cent, and in the former 10. In Alabama, however, there is a proviso that should a purchaser not be put in possession of the property within ten days of the day of sale all right of redemption is forfeited. In Kansas a defendant owner of real property may redeem at any time within eighteen months from the date of sale, by virtue of a trust deed, by payment in the usual way, and in the meantime is entitled to retain possession of the property unless the Court finds that the land has been abandoned, or not occupied in good faith, in which event the period of redemption is reduced to six months, and junior lien-holders are entitled to redeem within three months thereafter. Otherwise the first twelve months redemption period is exclusive to the owner, and after that any creditor, with certain exceptions, may redeem within fifteen months from the day of sale, and from each other until the fifteen months have expired. In Rhode Island no redemption can be claimed in case of a sale on execution, but should an estate be foreclosed in equity, or the mortgagee obtain possession by a suit at law, the mortgagor and his heirs, etc., may redeem within three years. MORTGAGE BUSINESS IN THE DOMINION OF CANADA. GENERAL REMARKS.-This important Colony of the British Empire extends along a line immediately north of the United States, extending for a distance of 3600 miles in width, between the Atlantic and the Pacific Oceans; and it comprises an area of 3,456,383 square miles; being considerably larger than the United States of America. Of this area1,500,000 square miles are occupied by the great northern territories or divisions of Mackenzie, Keewatin, Franklin, and Ungava, which surround Hudson Bay and are unsettled; and of which very little is known except that they are exploited by the Hudson Bay Company. Dismissing this extensive region from our consideration, and confining ourselves to South Canada, we find it includes in the east and south-eastern portion, the maritime provinces of Quebec, Nova Scotia, New Brunswick, and Prince Edward Island; adjoining Quebec lies Ontario, extending westward to Manitoba, which is the central province of the Dominion. With Manitoba commences what is known as Western Canada, consisting of Manitoba and the adjoining district, which comprises the territories of Assiniboia, Saskatchewan, Alberta, and Athabasca; and at the extreme west, on the Pacific, the extensive and important mining province of British Columbia, whilst still farther to the north, and adjoining the isolated American State of Alaska, lies the province of Yukon with its Klondike gold region. AGRICULTURE AND STOCK RAISING.-Agriculture overshadows all other industries in Canada, in its universality and importance. It is estimated that 46 per cent of the population derive their livelihood directly from it. The Dominion is largely indebted to the fertility of its soil, having immense areas of rich and productive land, easily worked, and well suited for the growth of cereals and other farm crops, of which a large variety are produced on the mixed farms that abound throughout the Dominion. Dairy produce also commands more attention than formerly, and horse, cattle, sheep, and swine raising has become a large and important feature in farm work. It has become quite an ordinary practice for all varieties of agricultural industry to be combined on the same farm, very largely due to the favourable climate, the fertility of the soil, and the richness of the pasture lands. American companies buy immense blocks of land, wherever they can secure it, in good quality, and within easy reach of railroads. They acquire the land at say $3 an acre, and either directly or through sub companies, bring in their settlers in wholesale fashion, from south of the line. These last buy at say $7, but settling thus in communities, by the very force of their own numbers, they make the land at once worth that much or more. AGENCIES EMPLOYED IN LENDING MONEY.-It may fairly be anticipated that before long Canada will rank with the chief food-producing countries of the world, and afford to capitalists every opportunity for a large and profitable loaning business. We find from official returns that in 1901, the amount borrowed on mortgage of real estate was $113,291,151, the number of loan companies and other agencies employed being 98. Ontario is the principal business centre. The chief mortgage companies have their head office at Toronto with (in some cases) branches at Winnipeg, the NorthWest Territories, Vancouver's Island, St. John's (New Brunswick), etc. There are others with chief offices at London, Hamilton, Peterborough, Brantford, and other cities in Ontario, and at Quebec, Montreal, etc. Some companies have their head offices in Great Britain, but these only constitute a small proportion. REGULATIONS (a) Affecting Mortgages. The only way in which property in the province of Quebec can be charged is by way of "hypothec," which differs from a mortgage, and is in fact a lien, in virtue of which a creditor may cause property to be sold in the hands of whomsoever it may be, and have a preference claim upon the proceeds of sale, in order of date, as fixed by the code. The legal title to the property remains in the mortgagor. The mortgagee is not entitled to foreclose, but must sue on the principal obligation, obtain judgment, bring the property to judicial sale, and then rank upon the proceeds, which are distributed according to privilege by a judgment of distribution. The "hypothec" must be executed before a notary public of the province under his seal. In Manitoba also a mortgage does not, under the "Torrens" system operate as a transfer of the land charged, but only has effect as a security. If default be made in the payment of the principal, etc., after one calendar month, the mortgagee may, after giving written notice to the mortgagor, enter into possession, and take the rents, etc. If default continue for another month after such notice, the mortgagee may sell the property. When default continues for six months the mortgagor may apply to the district registrar for an order of foreclosure. Mortgages under this system need not be under seal. In British Columbia, Ontario, New Brunswick, and Nova Scotia, mortgages are executed under seal, on a statutory form (except in Nova Scotia where such form need not be used), and this is registered in the land registry office of the respective provinces. Such registration is cancelled on production of a release, signed by the mortgagee. The foreclosure of properties where the mortgager is in default is effected by an action in the Supreme, or High Court, or by such power of sale as may be provided in the mortgage. As regards land sold for taxes, a person in default has usually power of redemption, for one or two years, in all the provinces; but we are unaware of any province in which such power exists as regards sale by mortgagees. (b) Aliens. No question of naturalisation arises in connection with the emigration of British subjects into Canada. The laws are marked by a spirit of great liberality also towards foreigners; and such persons can transact any business, and hold real estate, without being naturalised. In the case of foreigners taking up free homesteads, before the Government deed (or patent) can issue, they are required to become naturalised British subjects; this can be done by their residing three years in the country, and taking the oath of allegiance. Naturalisation confers political and all other rights. In Manitoba a foreign corporation must obtain a licence to carry on business. In Ontario under the Loan Corporation Act it is required that all loan companies or corporations shall be registered, and shall pay annually to the Crown the several taxes required by the Act. A company with a fixed or permanent paid-up capital pays $65 for any such capital up to $100,000-and for every additional $1000 or fraction thereof, 65 cents. Where the head office is in another province, or in Great Britain, the tax to be paid is charged only on the amount of funds employed by the company in Ontario. On or before 1st June in each year every company subject to tax must deliver to the provincial treasurer a statement showing the name of the company, its business, capital, and stock, and the amount paid up verified on oath-by manager or such other official as is required by the Act, according as the domicile is within, or outside, the province. All mortgages effected by loan companies or others must be registered. Non-provincial loan companies do not labour under any disadvantage in comparison with those in the province. (c) Interest. The legal rate of interest throughout Canada is five per cent, and this rate is payable on judgment debts except in Nova Scotia, where every judgment debt carries interest at six per cent per annum, until satisfied. Contracts may be made in writing, however, in Quebec, New Brunswick, Ontario, Manitoba, and British Columbia, stipulating for any rate of interest. In Nova Scotia a maximum rate of seven per cent only is permitted. There are no usury laws. (d) Dower.-In British Columbia the wife is entitled to dower out of lands of which the husband may die seized should he die intestate. In Manitoba a wife is not entitled to dower in the land of her deceased husband, but has the same right in it as if it were personal property. In Ontario and Nova Scotia the wife is entitled, with a few exceptions, to dower out of all lands of which her husband was seized at the time of marriage in which she did not bar her dower during his lifetime, but a husband can only be tenant by the courtesy of such of his wife's lands as she died seized of. In New Brunswick also a wife is entitled to dower out of all lands left by her husband. In Quebec, the law relating to the rights of married women is derived from the French law, under which (unless varied by ante-nuptial contract) community of property is established between the consorts residing in the Province, each of them retaining his or her right over immovable property owned at the time of marriage; but any acquired thereafter enters into the community of property. The husband administers, and may dispose of the community property, but can bequeath only one-half therein and the wife the other half, and, if she should die intestate, it passes to her heirs. Legal or customary dower (as distinct from conventional dower, which may be stipulated for by the ante-nuptial contract) consists in the usufruct for the wife and the ownership for the children of one half of such immovable property as belonged to the husband at the time of marriage, or which accrued to him thereafter from his father, mother, or other ascendant relatives. It opens upon the death of the husband, and must be registered. It may be excluded, or modified in any way, by ante-nuptial agreement. METHOD OF CONDUCTING BUSINESS.-The form of procedure in connection with the loaning business is very much the same all over Canada, but in Quebec, where the French law prevails, there is a difference so far as the legal process is concerned. Real Estate Agents only incidentally do a loaning business, but Insurance Companies lend largely, adopting much the same methods as the Loan Companies. Several of them, doing business in Manitoba and the North-West District, lend money at 6 per cent, the borrower taking out a life insurance policy covering the amount; but, as a rule, the companies do business pretty much alike. Trust Companies follow the same rules as the Loan Companies, but are rather more strict in their valuations and a little more expensive in their law fees. On the other hand, they lend at a lower rate of interest. We are indebted to the North of Scotland Canadian Mortgage Company, Limited, through their Secretary, William Smith, Esq., of Aberdeen; E. B. Osler, Esq., Joint General Manager for Canada, and S. B. Sykes, Esq., Secretary at Toronto, for information as to their method of conducting their loaning business, which is also to a large extent adopted not only in Ontario, but pretty generally in other parts of the Dominion. The Company has valuators or appraisers (they are not allowed to call themselves agents) throughout Ontario, who are furnished with application and valuation forms, and advertising matter, setting forth the mode of doing business, rates of interest, etc. The basis of lending of the best companies is 50 per cent of the actual cash value of the properties, which are limited to good improved farms, brick or stone residences and high-class business properties, in cities, towns, or large villages; as also churches (when accompanied by the personal bond of a satisfactory number of trustees) but excluding saw-mills, hotels, tanneries, and anything in the nature of factories. In exceptional cases slightly more than 50 per cent of value may be advanced, but only when everything else is satisfactory. The applicant is required to submit an application, over his signature, for the amount of loan desired. This is sent in by the local appraiser or valuator, accompanied by his report on the property. The report is an exhaustive one, and bears on the present and prospective value of the security, on its assessed value for municipal purposes, on the financial position of the borrower, and on his general character. The application comes before the advisory board, who, trained by experience to sift the same, and having a wide knowledge of values, decide at once whether the loan is acceptable or not. If acceptable as to value, rate of interest, time and terms of repayment, the mortgage as prepared by the Company's solicitors, is sent for execution, and is registered against the property as a guarantee of expense. While the solicitors are searching the title, an inspector from the Company's head office at Toronto visits the property and reports his findings to the Board. His report is also exhaustive, and if favourably considered by the Advisory Board, and if the title is found to be good, the money is advanced in due course. The amount of the expense in making the loan is retained, the borrower having to pay all such expenses. The solicitors' costs with disbursements run from 1 to 2 per cent on a loan of about $500, and to 1 per cent on a loan, say $8000 to $10,000. Beyond that amount the costs are proportionally less. The cost of inspection of the property is borne by the borrower, or by the Company, as may be arranged between them, but the inspector is a regular salaried officer of the Company, and the system of pre-inspection has been found to be the only safe method of conducting a lending business. The mortgage, the form of which is, from time to time, most carefully prepared by the Company's solicitors, and revised by the Company's counsel, is drawn payable in gold of lawful money of Canada, and provides for payment of interest on the principal and on all overdue payments of interest, |