Site navigation

A mortgage gives the lender a personal promise of repayment and a right to seek sale. It also gives the…

Section 58(g) supplies a residual category for a mortgage that falls outside the five named types. A combination of simple and usufructuary features can fall in that…

Choose your answer

A mortgage gives the lender a personal promise of repayment and a right to seek sale. It also gives the lender possession and a right to apply rents to the debt. It involves no absolute transfer, ostensible sale or deposit of title deeds. What category can apply under section 58 of the Transfer of Property Act, 1882?

Select one answer
Answer and explanation

Correct answer C

Section 58(g) supplies a residual category for a mortgage that falls outside the five named types.

A combination of simple and usufructuary features can fall in that category, depending on the instrument’s terms.

Option feedback

Option A

The transaction contains no ostensible sale subject to a condition.

Option B

The independent personal covenant and right to seek sale are features beyond the usufructuary arrangement described in section 58(d).

Option C

The combined terms can fall outside the separately defined types and therefore be anomalous under section 58(g).

Option D

The transaction does not use deposit of title deeds to create the security.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic