637. Application of marshalling to mortgages.

The doctrine of marshalling applies to the case of securities, whether mortgages, charges or liens, so as to prevent one claimant arbitrarily depriving another of his only security1. The doctrine applies where one creditor has a charge or lien on two funds and another has a charge or lien on only one of the funds, although if the double creditor has merely a right of set-off against the second fund, he cannot be required to abandon his charge on the first fund in favour of the second incumbrance on that fund and rely on his right of set-off2. If,