Property and Trust Law

A mortgage in which the lender is secured by taking possession of all the original title documents of the property that serves as security for the mortgage, gives the mortgagee the right to foreclose on the property, sell it, or appoint a receiver in case of nonpayment and it can be at any place.

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. 

Securitization is the process of pooling various types of debt - mortgages, car loans, or credit card debt, for example - and packaging that debt as bonds, pass-through securities, or collateralized mortgage obligations (CMOs), which are sold to investors. In a securitization transaction, all the given documents, but (e), are required. Thus, (1) is the correct answer.

If any person contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules made thereunder, he shall be punishable with imprisonment for a term which may extend to one year, or with fine, or with both.

English mortgage - The borrower promises to repay the borrowed money on a certain date. The borrower transfers the property to the lender. The lender will re-transfer the property when the money is repaid. The mortgaged property is absolutely transferred to the mortgagee.

Under enforcement of mortgages through court, while executing the mortgage decree, the decree-holder can bring the properties mortgaged to sale without first seeking an order of attachment from the court.

According to Hindu Minority and Guardianship Act, 1956, natural guardian of a Hindu minor cannot mortgage or charge any part of the property of the minor without the permission of the court.

"Delivery" means voluntary transfer of possession from one person to another. 

The Transfer of Property Act contains provisions relating to transfer of 'actionable claims'. The transfer of an actionable claim, whether with or without consideration, shall be effected only by the execution of an instrument in writing and signed by the transferor or his duly authorised agent, shall be complete and effectual upon the execution of such instruments and thereupon, all the rights and remedies of the transferor, whether by way of damages or otherwise, shall vest in the transferee, whether such notice of the transfer as is hereinafter provided be given or not.

Hypothecation is used for creating charge against the security of movable assets, but here the possession of the security remains with the borrower itself. Thus, in case of default by the borrower, the lender (to whom the goods/security has been hypothecated) will have to first take possession of the security and then sell the same. The best example of this type of arrangement is car loan. In this case, car/vehicle remains with the borrower but the same is hypothecated to the bank/financer. In case the borrower defaults, banks take possession of the vehicle after giving notice and then sell the same and credit the proceeds to the loan account.

A lease of immovable property for any other purpose shall be deemed to be a lease from month to month, terminable, on the part of either lessor or lessee, by fifteen days' notice.

"Hypothecation" means a charge in or upon any movable property, existing or future, created by a borrower in favour of a secured creditor without delivery of possession of the movable property to such creditor, as a security for financial assistance and includes floating charge and crystallisation of such charge into fixed charge on movable property.

A lease is a legal document outlining the terms under which one party agrees to rent property from another party and the periodic payment made to the owner of a property for the use of said property is rent. Thus, both are different. Option 3 does not state the truth.

A property can be sold without intervention of court, if it is located at only Chennai, Mumbai and Kolkata or towns notified by the State Government. Thus, option 4 is the correct answer.

Preliminary decree was ordered to be drawn up. Thereafter, as the defendants had failed to pay the decretal amount, final decree proceedings were initiated. Thus, option 2 is the correct answer.