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Note: Neville Park Fine Homes, Inc. (Mortgagee/ Applicant) was required by court order to pay CA$310,095 to the court as security for a possible judgment against him, in favor of Maurice Bard (Defendant). The order contemplated that payment would be made using the net proceeds of the sale of a foreclosed property in dispute. Mortgagee/Applicant posted an LC in lieu of cash to the court after obtaining consent from the acting solicitor for Bard. Mortgagee/ Applicant then moved to amend the court order to allow a letter of credit to be posted to the court as payment. The Ontario Superior Court of Justice, Wilton-Siegel, J., granted the motion.

Bard had opposed the motion and cross-moved for an order stating that Mortgagee/Applicant was in contempt of court because it did not pay cash. The court noted that Bard had opposed the order to obtain greater leverage against Mortgagee/Applicant forcing it to settle; a reason that the court stated was not valid. The judge allowed posting a letter of credit "in a form satisfactory to the Office of the Accountant of the Court."

[JEB/jlb]

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