New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Where, without delivering possession of the mortgaged

    property, the mortgagor binds himself personally to pay the mortgage-money, in the event of his failing to pay, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, this is a _______.
    A Usufructuary mortgage. Correct Answer Incorrect Answer
    B Simple mortgage. Correct Answer Incorrect Answer
    C Mortgage by conditional sale. Correct Answer Incorrect Answer
    D English mortgage. Correct Answer Incorrect Answer

    Solution

    As per Transfer of property act, 1882 S.58 (b) 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.

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