Law Relating to Securities and Modes of Charge - II
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.
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Free sample — 8 of 65 rapid-fire Q&A cards.
What is Transfer of Property Act, 1882 (TP Act)?
is the principal enactment governing mortgages.
Which Act primarily governs mortgages of immovable property in India?
Transfer of Property Act, 1882 (TP Act)
Legal nature — Letter of Comfort / Letter of Guarantee?
Letter of Comfort: Moral / persuasive obligation; Letter of Guarantee: Legally binding contractual obligation
Which section of the TP Act defines the term 'mortgage'?
Section 58(a) of the Transfer of Property Act, 1882
ICA section — Letter of Comfort / Letter of Guarantee?
Letter of Comfort: Not governed by Sec. 126 ICA; Letter of Guarantee: Governed by Sec. 126 ICA
What does the mortgagor transfer in a mortgage under Section 58(a) TP Act?
An interest in specific immovable property, not ownership
Enforceability — Letter of Comfort / Letter of Guarantee?
Letter of Comfort: Generally not enforceable in court (unless words show contractual intent); Letter of Guarantee: Enforceable as a contract
Which party is referred to as the 'mortgagee' in a mortgage transaction?
The transferee, i.e., the bank or creditor
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