Facts
- A mortgage was granted over stock,which gave the mortgagee the option to purchase the stock
- The mortgagee purported to exercise the option
Issue
- Was the option enforceable?
Decision
- No
Reasoning
- Having an option to purchase the stock would undermine a mortgagor’s right to redeem his mortgage
- This likely applies to mortgages of real property also (land), such that an option to buy a fee simple estate in a mortgage agreement would not be enforceable
