480. Duties of mortgagee in appointing receiver.

A mortgagee owes a general duty to subsequent incumbrancers and to the mortgagor to use his powers for the sole purpose of securing repayments of the moneys owing under his mortgage and a duty to act in good faith1. The mortgagee can choose when to appoint a receiver having regard to his own interests even though the timing of the appointment may be disadvantageous to the mortgagor or unsecured creditors2. It may well be that a mortgagee who appoints a receiver and manager, knowing that the receiver and manager intends to exercise his powers for the purpose of frustrating