X, a businessman in a notified town, borrows from Y and, to secure the loan, deposits the TITLE DEEDS of his immovable property with Y. Under Section 58 of the Transfer of Property Act, 1882 this transaction is:

A mortgage by deposit of title deeds, sometimes described as an equitable mortgage, is created when a person delivers title deeds of his immovable property to a creditor (or his agent) as security for a loan, evidenced by writing if required. Section 58(f) of the Transfer of Property Act recognises this mortgage, valid in towns notified by the State Government. No registration is strictly required for its creation (though the contract may be evidenced by writing). It is a common mode of securing finance and differs fundamentally from a sale or lease, which transfer ownership or possession for a term.