How have courts dealt with a mortgage that purported to cover goods that may not be owned by the mortgagor?

Nova Scotia, Canada

The following excerpt is from Royal Bank of Canada v. Madill, 1981 CanLII 2995 (NS CA):

The appellant referred us to a number of cases: Coyne v. Lee dealt with a chattel mortgage and purported to cover goods "... which at any time may be owned by the said mortgagor and kept in the said store for sale by him ... and whether now in stock or hereafter to be purchased and placed in stock ...".

Hagarty C.J.O. reviewed Holroyd v. Marshall (1861), 10 H.L.C. 191, 11 E.R. 999, and concluded [at pp. 507-8] that in the absence of fraud the title to after-acquired goods may prevail as against execution creditors.

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