usufructuary mortgage
Under Section 58(d) of the Transfer of Property Act, 1882, the mortgagor delivers possession (or binds himself to deliver it) to the mortgagee and authorises him to retain possession until the money is paid, and to receive the rents and profits in lieu of interest, or in payment of the mortgage money, or partly in each.
There is no personal liability of the mortgagor, and the usufructuary mortgagee cannot sue for foreclosure or sale (proviso to s.67). His security is his possession. The mortgagor may redeem on paying the money, and no time limit for redemption runs against him while the mortgage subsists. Usufruct means the right to enjoy the fruits of another's property.
Example
The farmer handed over his field to the lender, who was to take the crops in place of interest; this was a usufructuary mortgage under Section 58(d).
In Indian law
- Sections 58(d) and 67, Transfer of Property Act, 1882
See also
mortgage · simple mortgage · equity of redemption
Read more in the study notes
- Mortgage deed and lease deed (Drafting, Pleading and Conveyance)
- Karnataka Land Reforms Act, 1961: ceiling on land holdings and restrictions on holding or transfer of agricultural land (Land Law)
- Mortgage: definition and kinds (Property Law)
- Rights and liabilities of mortgagor and mortgagee (Property Law)