Where the mortgagor delivers possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage- money, and to receive the rents and profits accruing from the property in lieu of interest, or in payment of the mortgage-money, the transaction is called an _______ mortgage.

All India Bar Examination (AIBE) 17-XVII Previous Year Question Papers with Answers

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36.

Where the mortgagor delivers possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage- money, and to receive the rents and profits accruing from the property in lieu of interest, or in payment of the mortgage-money, the transaction is called an _______ mortgage.

A: Conditional

B: English

C: Simple

D: Usufructuary

The answer is: D

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Explanation

The correct option is D: Usufructuary.

A usufructuary mortgage is a type of mortgage where the mortgagor delivers possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage- money, and to receive the rents and profits accruing from the property in lieu of interest, or in payment of the mortgage-money. This is one of the six types of mortgages recognised by the Transfer of Property Act, 1882.