Multiple choice

(a) A mortgage deed is a document in which the mortgagor transfers an interest in real estate to a mortgagee. (b) Debentures provide voting rights to the holders of the debentures in general meetings. (c) Assignee of the life policy can not sue in his own name. (d) Borrowers can pledge the documents of title to goods.

  1. (a) to (d) are correct

  2. (a), (b) and (c) are correct

  3. (a), (c) and (d) are correct

  4. (b), (c) and (d) are correct

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A mortgage deed is a document in which the mortgagor transfers an interest in real estate to a mortgagee for the purpose of providing a mortgage loan. The mortgage deed is the evidence of the interest transferred to the mortgage holder. An assignee can sue in his own name if he had complied with the Act (Policies of Assurance Act, 1867) and had obtained on assignment either by endorsement on the policy or by separate instrument. The borrower may pledge the documents of title with the bank and, on the other hand, mange to obtain the delivery of goods on the basis of indemnity bond or some other device. Debentures are generally freely transferable by the debenture holder. Debenture holders have no rights to vote in the company's general meetings of shareholders. Thus, (b) is not correct.