Equityline SPV Limited Partnership, Receivership

Equityline SPV Limited Partnership, a Richmond Hill, Ontario-based private mortgage lender, was placed in receivership on August 8 on application by Equitable Bank, owed over $10 million.

The company’s mortgage portfolio consists of residential mortgage loans, most of which are valued at under $1 million. It has defaulted on its credit agreement with Equitable Bank, including by breaching its custodial agreement with Computershare Trust Company and defaulting on the payment of principal and interest.

In addition, Equitable Bank alleges that the company engaged in fraudulent mortgage practices and has been providing Equitable Bank with inaccurate information as to the status of the mortgages held by the company, a majority of which are in default, causing Equitable Bank to no longer know the value of its security.

KSV is the receiver.

Counsel is Aird & Berlis for Equitable Bank and Friedmans for the company.