THE TRANSFER OF PROPERTY ACT 493
- A mortgagee can follow the mortgaged property in the hands of any transferee from the mortgagor. While a charge can be enforced only against transferee with notice—
33 Cal. 985.
§ DIFFERENT CLASSES OF MORTGAGE
- The section enumerates six classes of mortgage :—
(i) Simple mortgage.
(ii) Mortgage by conditional sale.
(iii) Usufructuary mortgage.
(iv) English mortgage.
(v) Equitable mortgage.
(vi) Anomalous mortgage.
- Characteristics of the different classes of mortgage.
(i) Simple Mortgage
- A Simple mortgage involves two things :
(i) A personal obligation, express or implied, to pay.
(ii) The transfer of a right to cause the property to be sold.
Personal obligation
- When a person accepts a loan, there is involved a personal liability to pay, unless there is a covenant to pay out of a particular fund.
10 Cal. 740 ; 22 Cal. 434 ; 16 Cal. 540 ; 13 Mad. 192 ;
15 Mad. 304 ; 27 Mad. 526 : 86.
A loan may be a secured loan or unsecured loan.
Every unsecured loan involves a personal obligation to pay.
44 I. A. 87.
- The only case of a loan in which a personal obligation to pay is negatived, is where there is a covenant to pay out of a particular fund.
Cases. 10 Cal. 740 ; 22 Cal. 434 ; 16 Cal. 540 ; 13 Mad. 192
15 Mad. 304 ; 27 Mad. 526 : 86.