TYPES
OF MORTGAGES
SIMPLE
MORTGAGE
Where,
without delivering possession of the mortgaged property, the mortgagor
binds himself personally to pay the mortgage-money, and agrees,
expressly or impliedly that in the event of his failing to pay according
to his contract, the mortgagee shall have a right to cause the mortgaged
property to be sold and the proceeds of sale to be applied, so far
as may be necessary, in payment of the mortgage-money, the transaction
is called a simple mortgage and the mortgagee a simple mortgagee.
MORTGAGE
BY CONDITIONAL SALE
Where,
the mortgagor ostensibly sells the mortgaged property-
-
On
condition that on default of payment of the mortgage-money on
a certain date the sale shall become absolute, or;
-
On
condition that on such payment being made the sale shall become
void, or ;
-
On condition that on such payment being made the buyer shall
transfer the property to the seller,
The
transaction is called a mortgage by conditional sale and the mortgagee
a mortgagee by conditional sale:
PROVIDED
that no such transaction shall be deemed to be a mortgage, unless
the condition is embodied in the document, which effects or purports
to effect the sale.
USUFRUCTUARY
MORTGAGE
Where
the mortgagor delivers possession, or expressly or by implication
binds himself to deliver possession of the mortgaged property to
the mortgagee and authorises him to retain such possession until
payment of the mortgage money, and to receive the rents and profits
accruing from the property or any part of such rents and profits
and to appropriate the same in lieu of interest or partly in payment
of the mortgage money, partly in lieu of interest and partly in
payment of the mortgage money, the transaction is called a usufructuary
mortgage and the mortgagee a usufructuary mortgagee.
ENGLISH
MORTGAGE
Where
the mortgagor binds himself to repay the mortgage money on a certain
date, and transfers the mortgaged property absolutely to the mortgagee,
but subject to a proviso that he will re-transfer it to the mortgagor
upon payment of the mortgage money as agreed, the transaction is
called an English mortgage.
ANOMALOUS
MORTGAGE
A
mortgage which is not a simple mortgage, a mortgage by conditional
sale, an usufructuary mortgage, an English mortgage or a mortgage
by deposit of title deeds within the meaning of section 58 is called
an anomalous mortgage.
