[Fsfe-se] NUMBER ONE Success System

Tommy Lee noss1233 at gmail.com
Thu Aug 23 13:07:05 CEST 2007


"True" legal Mortgage *See also: Mortgage*

A legal mortgage arises when the assets are conveyed to the secured party as
security for the obligations, but subject to a right to have the assets
reconveyed when the obligations are performed.[6] This right is referred to
as the "equity of redemption". The law has historically taken a dim view of
provisions which might impede this right to have the assets reconveyed
(referred to as being a "clog" on the equity of redemption), although the
position has become more relaxed in recent years in relation to
sophisticated financial transactions.

References to "true" legal mortgages mean mortgages by the traditional
common law method of transfer subject to a proviso in this manner, and
references are usually made in contradistinction to either equitable
mortgages or statutory mortgages. True legal mortgages are relatively rare
in modern commerce, outside of occasionally with respect to shares in
companies. In England, true legal mortgages of land have been abolished in
favour of statutory mortgages.[7]

To complete a legal mortgage it is normally necessary that title to the
assets is conveyed into the name of the secured party such that the secured
party (or its nominee) becomes the legal titleholder to the asset. If a
legal mortgage is not completed in this manner it will normally take effect
as an equitable mortgage. Because of the requirement to transfer title, it
is not possible to take a legal mortgage over future property, or to take
more than one legal mortgage over the same assets. However, mortgages (legal
and equitable) are non-possessory security interests. Normally the party
granting the mortgage (the *mortgagor*) will remain in possession of the
mortgaged asset.[8]

The holder of a legal mortgage has three primary remedies in the event that
there is a default on the secured obligations: they can foreclose on the
assets, they can sell the assets or they can appoint a receiver over the
assets. The holder of a mortgage can also usually sue upon the covenant to
pay which appears in most mortgage instruments. There are a range of other
remedies available to the holder of a mortgage,[9] but they relate
predominantly to land, and accordingly have been superseded by statute, and
they are rarely exercised in practice in relation to other assets. The
beneficiary of a mortgage (the *mortgagee*) is entitled to pursue all of its
remedies concurrently[10] or consecutively.[11]
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