cs professional Drafting short notes Usufructuary mortgage
Ans.) In a usufructuary mortgage, the mortgagor hands over physical possession of the property to the mortgagee or expressly binds himself to deliver possession of the mortgaged property to the mortgagee and does not take any kind of personal responsibility regarding the payment of mortgage money and rents. The mortgagee himself has to utilize rents and profits accruing from the property for the satisfaction of his mortgage money as well as rents. So long as the debt remains unsatisfied, the mortgagee is entitled to remain in possession of the property. No time-limit is fixed in such a mortgage as it is difficult to predict when the debt will be satisfied. Where the mortgagor fails to deliver possession of the property, the mortgagee can sue for possession or for the recovery of money advanced. If the mortgagee has got possession of the mortgaged property, his only remedy is to retain possession till his debts are satisfied. Usufructuary mortgage is also known as „Bhogya-Bandhak”.