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A mortgagor delivers possession of the mortgaged property to the mortgagee, who may retain it until the…

Section 58(d) covers delivery of possession or an undertaking to deliver it, retention until payment, and appropriation of rents and profits or part of them towards…

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A mortgagor delivers possession of the mortgaged property to the mortgagee, who may retain it until the mortgage money is paid and apply rents and profits towards the mortgage money. What kind of mortgage is this under the Transfer of Property Act, 1882?

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Answer and explanation

Correct answer A

Section 58(d) covers delivery of possession or an undertaking to deliver it, retention until payment, and appropriation of rents and profits or part of them towards interest, the mortgage money, or both.

Those features identify a usufructuary mortgage.

Option feedback

Option A

Section 58(d) describes retention of possession and appropriation of the property's rents and profits to satisfy the mortgage obligation.

Option B

Section 58(e) requires a personal promise to repay on a certain date and an absolute transfer subject to reconveyance upon repayment.

Option C

Section 58(c) uses an ostensible sale with a qualifying condition embodied in the sale document.

Option D

Under section 58(b) the mortgagor does not deliver possession, binds themself personally to pay and agrees to a right to cause a sale on default.

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