378. Transfer for less than mortgage debt.

378.     Transfer for less than mortgage debt.

The value of the mortgage debt to the transferee depends on the soundness of the security, and he may purchase the debt and security at less than the nominal amount of the debt; but, notwithstanding that he has done so, he is entitled to recover the whole amount due at the time of the transfer1 unless he stands in a position which would make this inequitable2. The rule applies not only in favour of a stranger who purchases the mortgage debt3, but also in favour of a creditor4 or subsequent