Bijural Terminology Records

Common Law

redeem the mortgage

Civil Law

extinguish the hypothec

Title of the Legislative Text

Interest Act, R.S.C. (1985), c. I-15

Provision

10. (1) Whenever any principal money or interest secured by mortgage on real property is not, under the terms of the mortgage, payable until a time more than five years after the date of the mortgage, then, if at any time after the expiration of the five years, any person liable to pay or entitled to redeem the mortgage tenders or pays, to the person entitled to receive the money, the amount due for principal money and interest to the time of payment, as calculated under sections 6 to 9, together with three months further interest in lieu of notice, no further interest shall be chargeable, payable or recoverable at any time thereafter on the principal money or interest due under the mortgage.

Problem

Although in common law the phrase "to redeem the mortgage" can be translated by purger l'hypothèque, it is more appropriate, for semantic reasons, to use the term racheter l'hypothèque, which is more commonly used. In civil law, although the phrase purger l'hypothèque is not problematic, it is preferable to use the expression éteindre l'hypothèque in the French version, and in the English version the phrase "to extinguish the hypothec".

Solution

In the English version, the term "to extinguish the hypothec" is added to reflect the phrase éteindre [...] l'hypothèque. In the French version, the term purger is replaced by the phrase payer en vue d'éteindre ou de racheter for purposes of civil law.

Harmonized Provision

10. (1) Whenever any principal money or interest secured by mortgage on real property or hypothec on immovables is not, under the terms of the mortgage or hypothec, payable until a time more than five years after the date of the mortgage or hypothec, then, if at any time after the expiration of the five years, any person liable to pay, or entitled to pay in order to redeem the mortgage, or to extinguish the hypothec, tenders or pays, to the person entitled to receive the money, the amount due for principal money and interest to the time of payment, as calculated under sections 6 to 9, together with three months further interest in lieu of notice, no further interest shall be chargeable, payable or recoverable at any time after the payment on the principal money or interest due under the mortgage or hypothec.

Federal Law-Civil Law Harmonization Act, No. 1, S.C. 2001, c. 4, s. 95

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