Table of Contents
Transfer Of Property Act, 1882: Jaiib Paper 3 (Module D), Unit 23
Dear bankers,
As we all know that is Transfer Of Property Act, 1882 for JAIIB Exam. JAIIB exam conducted twice in a year. So, here we are Transfer Of Property Act, 1882, (Uni 24) Commercial Laws with Reference to Banking Operations (Module D), Legal & Regulatory Aspects of Banking -Paper 3.
Mortgage
Mortgage is a transfer of an interest in specific immoveable property as a security for the repayment of a monetary liability.
The transferor is called Mortgagor. The transferee is called a Mortgagee
Types Of Mortgage
| Simple Mortgage | does not deliver possession of the mortgaged property
mortgagor himself personally to pay the mortgage money in the event of his failing to pay, the mortgagee shall have right to get the mortgaged property sold and recover his dues |
| Mortgage By Conditional Sale | The mortgagor apparently sells the mortgaged property to the mortgagee with the condition that on default of payment on a certain date the sale becomes absolute, the sale shall becomes void, the buyer(mortgagee) shall transfer the property to seller(mortgagor) |
| Usufructuary Mortgage | Gives possession
To retain such possession until payment of mortgage-money To receive rents and profits arising from the property Appropriate the same towards payment of interest or mortgage-money or both |
| English Mortgage | The Mortgagor binds himself to repay the mortgage-money on a certain date and transfers the mortgaged property absolutely to the mortgagee
Subject to the condition that he will re-transfer it to the mortgagor upon payment of the mortgage-money The power of sale without intervention of Court if money not paid |
| Mortgage by
Deposit of Title Goods |
The Mortgagor delivers documents of title
With intent to create a security thereon The delivery of documents of title is done in a town specified by state govt. |
A mortgage other than a mortgage by deposit title deeds can be effected only in terms of a mortgage deed duly signed by the mortgagor and attested by at least two witnesses.
The essentials of valid Equitable Mortgage is debt, deposit of title deeds and intention as security.
Enforcement of Mortgages Through Court
After the enactment of the Recovery of Debts due to Bank and Financial Institutions Act, 1993, recovery of debts due to banks and financial institutions in excess of 10 lacs only can be commenced in the Debts Recovery Tribunals.
Leases of Immoveable Property
- A lease is a transfer of a right to enjoy the property for a certain time on in perpetuity (that is forever), in consideration of a price paid or promised, to be given periodically to the transferor by the transferee.
- A lease for Agriculture/manufacturing purpose is deemed to be a year to year lease. This lease can be terminated by the lessor/lessee by giving 6 months notice to one another.
- A lease for any other purpose is deemed to be a lease from month to month. It can be terminated by giving 15 days notice to one another.
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