Usufructuary Mortgage - Definition - Law Dictionary Home Dictionary Definition usufructuary-mortgage

Definition :

Usufructuary mortgage, Where the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee, and authorise him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property or any part of such rents and profits and to appropriate the same in lien of interest, or in payment of the mortgage-money, or partly in lieu of interest or partly in payment of the mortgage money, the transaction is called an unsurfructuary mortgagee and the mortgagee an unsurfructuary. [Transfer of Property Act (4 of 1882), s. 58(d)]