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Monique Owns a Piece of Land Called Blackacre

Question 74

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Monique owns a piece of land called Blackacre.Blackacre is worth $500 000.Monique created a mortgage in Bjorn's favour to secure repayment of a $200 000 loan that she received from him.A short time later, she created a subsequent mortgage in Mike's favour to secure repayment of a $250 000 loan that she received from him.Does the existence of two mortgages expose Monique, Bjorn, or Mike to a substantial risk of financial loss? Explain your answer.

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A subsequent mortgage creates additional...

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