Horace borrowed $100 000 from Blossom. As security for repayment of that loan, he created a mortgage over a piece of land called Blackacre. Horace has repaid part of the loan, but still owes $40 000 to Blossom. He is unable to repay the outstanding amount. Which of the following statements is TRUE?
A) Because the parties have both a loan contract and a mortgage, Blossom has an absolute right to sue Horace personally for $40 000, regardless of the province or territory in which Blackacre is located.
B) If Blossom exercises a right to take possession of Blackacre, Horace's equity of redemption will necessarily be terminated.
C) If Blossom exercises a right to take possession of Blackacre, she cannot later use the remedy of foreclosure.
D) If the mortgage contract contains an acceleration clause, then Horace may be liable to immediately pay $40 000, even if the parties originally expected that he would pay half of that amount next year.
E) Under normal circumstances, Blossom has the right to take possession of Blackacre, but only if the land is located in a land titles system jurisdiction.
Correct Answer:
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