mortgage a conveyance of land or an assignment of chattels as a security for the payment of a debt or the discharge of some other
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motor insurers' bureau
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obligation for which it is given. Every form of property may be mort- gaged except the salaries of public functionaries. Mortgages may be legal, in which case they must be effected by deed, or equitable, in which event they may be effected informally, as, for example, by the deposit of documents of title with the lender. The lender (the mort- gagee) is accorded certain powers to protect his investment. The prin- cipal powers are sale and foreclosure and the right to appoint a receiver – a right that may become exercisable in the event of a default. The borrower (the mortgagor) is entitled to redeem in accor- dance with the terms of the mortgage. On payment of the outstand- ing balance, together with any interest due, the mortgage is dis- charged.
In relation to land in England and Wales, a legal mortgage of free- hold land is effected by means of a demise subject to a proviso for cesser on redemption; in relation to leaseholds, the mortgage as effected by a sub-demise. An alternative form, provided for by Sec- tion 851 of the Law of Property Act 1925, is a charge by deed expressed to be by way of legal mortgage. Since the Law of Property (Miscellaneous Provisions) Act 1989, the creation of an equitable mortgage requires to be in writing and can, it would seem, no longer be effected merely by deposit of title deeds. To secure protection against bona fide purchasers, equitable mortgagees should ensure that their mortgages are protected by registration as a land charge (where the title is not subject to the Land Registration Acts) or as a charge where the title is so subject.
In Scotland the word is used non-technically to describe the lend-
ing relationship in relation to heritage. The legal documentation in Scotland is by way of a STANDARD SECURITY.