New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Question

    When the mortgaged property is at lease and is renewed

    by mortgagor:
    A Mortgagee shall be entitled to new lease Correct Answer Incorrect Answer
    B Mortgagee shall be entitled to new lease as a security. Correct Answer Incorrect Answer
    C Mortgagee is not entitled to new lease. Correct Answer Incorrect Answer
    D Mortgagee is entitled to it only after redemption, if principle amount not payed to him. Correct Answer Incorrect Answer

    Solution

    As per S.71. Renewal of mortgaged lease.—When the mortgaged property is as lease and the mortgagor obtains a renewal of the lease, the mortgagee, in the absence of a contract to the contrary, shall, for the purposes of the security, be entitled to the new lease.  

    Practice Next