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Which type of mortgage is defined by delivery of possession, or an obligation to deliver it, together…

Under Section 58(d), the mortgagor delivers possession or binds themselves to deliver it. The mortgagee may retain possession and apply rents and profits to interest,…

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Which type of mortgage is defined by delivery of possession, or an obligation to deliver it, together with the mortgagee's right to take rents and profits as specified by Section 58 of the Transfer of Property Act, 1882?

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Answer and explanation

Correct answer D

Under Section 58(d), the mortgagor delivers possession or binds themselves to deliver it. The mortgagee may retain possession and apply rents and profits to interest, principal, or both, as provided. That combination characterizes a usufructuary mortgage.

Option feedback

Option A

Incorrect. The defining feature is an ostensible sale subject to a stated condition.

Option B

Incorrect. The defining features are a promise to repay on a certain date and an absolute transfer subject to retransfer.

Option C

Incorrect. This form turns on delivery of title documents with intent to create security.

Option D

Correct. Section 58(d) describes possession and entitlement to rents and profits in a usufructuary mortgage.

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