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.
Explanation & Strategy
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When the mortgagor delivers possession of mortgaged property to the mortgagee with the condition that the mortgagee shall retain it until the debt is paid and shall receive rents/profits in lieu of or towards interest, this creates a 'usufructuary mortgage' under Section 58(d) of the Transfer of Property Act.
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