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    Question

    Which of the following kinds of mortgages involves

    transfer of possession of property to mortgagee and also rent collected from the property is deposited with the mortgatee?
    A Usufructuary Mortgage. Correct Answer Incorrect Answer
    B Simple Mortgage. Correct Answer Incorrect Answer
    C English Mortgage Correct Answer Incorrect Answer
    D A and C. Correct Answer Incorrect Answer
    E Anomalous Mortgage Correct Answer Incorrect Answer

    Solution

    (d) Usufructuary mortgage.—Where the mortgagor delivers possession [or expressly or by implication binds himself to deliver possession] of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property [or any part of such rents and profits and to appropriate the same] in lieu of interest, or in payment of the mortgage-money, or partly in lieu of interest [or] partly in payment of the mortgage-money, the transaction is called an usufructuary mortgage and the mortgagee an usufructuary mortgagee.

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