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In a town covered by section 58(f) of the Transfer of Property Act, 1882, a borrower delivers title…

Section 58(f) defines a mortgage by deposit of title deeds where documents of title are delivered to the creditor or agent in a covered town with the intention of creating…

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In a town covered by section 58(f) of the Transfer of Property Act, 1882, a borrower delivers title deeds of immovable property to a lender intending to create security. What form of mortgage does this describe?

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Answer and explanation

Correct answer D

Section 58(f) defines a mortgage by deposit of title deeds where documents of title are delivered to the creditor or agent in a covered town with the intention of creating security.

The statutory classification turns on the qualifying delivery and intention.

Option feedback

Option A

An English mortgage involves an absolute transfer subject to retransfer on payment and a promise to repay on a certain date.

Option B

A usufructuary mortgage involves possession or a binding agreement to give possession, with the mortgagee entitled to retain possession and receive rents or profits as prescribed.

Option C

An anomalous mortgage falls outside the named forms, including a mortgage by deposit of title deeds.

Option D

The place, delivery of the title deeds and security intent fit section 58(f).

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