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 _______.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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