383. Effect of transfer on amount originally advanced on a mortgage.

The effect of a receipt for money is considered generally elsewhere in this work1. As regards the amount originally advanced on a mortgage, the mortgagor's receipt contained in or indorsed on the mortgage deed is sufficient evidence of the advance in favour of a transferee of the mortgage for value who has no notice that the money was not advanced2, even if no money has in fact been advanced3. If, however, the mortgage was created in circumstances which call for inquiry, the transferee is bound, if he has notice of those circumstances

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