Randall Initially Owned a Piece of Land Called Blackacre That

Multiple Choice

Randall initially owned a piece of land called Blackacre that was worth $400 000.He borrowed $200 000 from Keir and created a mortgage over Blackacre in favour of Keir.Randall then borrowed $100 000 from Ian and created a mortgage over Blackacre in favour of Ian.Randall has not repaid any part of either debt.Because of a recession,the value of Blackacre has dropped to $90 000.Which of the following statements is TRUE?

A) It is possible that Ian will be treated as the initial mortgagee and that Keir will be treated as the subsequent mortgagee if the mortgagees entered into a priority agreement or if they registered in the sequence of Ian then Keir in a land title system.
B) Keir must be treated as the initial mortgagor and Ian may be treated as the subsequent mortgagor.
C) If Blackacre is sold for $90 000 because Randall is in default under the mortgages,Keir will receive $60 000 and Ian will receive $30 000,because Randall owes Keir twice as much as Ian.
D) Ian still has some equity in his property so he should be able to find another mortgage lender to lend as a third mortgagee.
E) By granting two mortgages over the same property,Randall has committed mortgage fraud.