Page:United States Statutes at Large Volume 76A.djvu/323

–227– -227Bee. 4156. 4156. 4157. 4158. 4159. 4160. 4161. 4162. 4163.

Duties of registrar with respect to filing; fee. Filing assignment of mortgage; notice. Removal of mortgaged property from Canal Zone. Foreclosure of mortgage; manner. Attachment or execution upon mortgaged property. Inapplicability of sections 4154-4157 to certain ships and aircraft. Continuance of lien of mortgage on crops. Validity of certain mortgages. Discharge of mortgage of personal property.

Subchapter I—General Provisions § 4111. Definition of mortgage Mortgage is a contract by which specific property is hypothecated for the performance of an act, without the necessity of a change of possession. § 4112. Formalities of creation A mortgage may be created, renewed, or extended, only by writing, subscribed by the party to be charged or by his agent thereunto authorized in writing. § 4113. Lien of mortgage as special The lien of a mortgage is special, unless otherwise expressly agreed, and is independent of possession. § 4114. Transfer as creating mortgage or pledge A transfer of an interest in property, other than in trust, made only as a security for the performance of another act, is to be deemed a mortgage, except when it is accompanied by actual change of possession, in which case it is to be deemed a pledge. § 4115. Proof of transfer made subject to defeasance on a condition Except as against a subsequent purchaser or encumbrancer for value and without notice, the fact that a transfer was made subject to defeasance on a condition may, for the purpose of showing the transfer to be a mortgage, be proved, though the fact does not appear by the terms of the instrument. § 4116. Extent of mortgage lien A mortgage is a lien upon everything that would pass by a grant of the property. § 4117. Possession of mortgaged property Unless authorized by the express terms of the mortgage, a mortgage does not entitle the mortgagee to the possession of the property; but after the execution of the mortgage the mortgagor may agree to a change of possession without a new consideration. § 4118. Mortgage not a personal obligation A mortgage does not bind the mortgagor personally to perform the act for the performance of which it is a security, unless there is an express covenant therein to that effect. § 4119. Waste A person whose interest is subject to the lien of a mortgage may not do any act which will substantially impair the mortgagee's security. § 4120. Subsequent acquisition of title by mortgagor Title acquired by the mortgagor subsequent to the execution of the mortgage, inures to the mortgagee as security for the debt in like manner as if acquired before the execution.

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