legal mortgage

A legal mortgage can now be effected in one of two ways:

The holder of a legal mortgage also has a power of sale over the assets.

A good root would preferably comprise a conveyance on sale, or if not, a legal mortgage.

True legal mortgages are relatively rare in modern commerce, outside of occasionally with respect to shares in companies.

If a legal mortgage is not completed in this manner it will normally take effect as an equitable mortgage.

Generally speaking, an equitable mortgage has the same effect as a perfected legal mortgage except in two respects.

According to Omotola the bill of sale is "a form of legal mortgage of chattels".

Vinelott J. chose the legal mortgage dated 18 February 1985 granted by the sixth plaintiff.

Therefore, without express authority by deed, a partner is unable to buy or sell land, or execute a legal mortgage on behalf of the partnership.

Class C (i) Any legal mortgage not protected by the deposit of documents (a puisne mortgage).

In England, true legal mortgages of land have been abolished in favour of statutory mortgages.

If, however there are trustees, the legal mortgage can be vested in them, on trust for the beneficiary debentureholders, and the trustees retain custody of the title deeds.

Generally speaking, the mortgagee will have the same rights as they would have had under a traditional true legal mortgage, but the manner of enforcement is usually regulated by the statute.

Equitable mortgages don't fit the criteria for a legal mortgage, but are considered mortgages under equity (in the interests of justice) because money was lent and security was promised.

Common Law treated the mortgagee as the owner of the land in case of the ordinary legal mortgage; Equity treated the mortgagor as still being in a sense owner.

A second legal mortgage can be created by leasing the land to the second mortgagee for a term longer by at least one day than the term limited to the first mortgagee.

(If the chattel mortgage does not meet the statutory requirements for a legal mortgage it may nevertheless be re-characterised as an equitable mortgage or fixed or floating charge.)

This can be done by a legal mortgage, under which the shareholder transfers the shares to the lender (who registers the transfer) subject to an agreement to re-transfer them when the loan is repaid.

The limitation period for legal mortgages (as opposed to equitable mortgages) that vest in the Crown before the end of the 12th year of the limitation period is extended to 30 years.

A legal mortgage arises when the assets are conveyed to the secured party as security for the obligations, but subject to a right to have the assets reconveyed when the obligations are performed.

Because of the requirement to transfer title, it is not possible to take a legal mortgage over future property, or to take more than one legal mortgage over the same assets.

For unregistered conveyancing, the provisions of the Law of Property Act 1969 provide that a good root of title is a conveyance on sale or legal mortgage which is at least 15 years old.

An equitable mortgage can arise in two different ways - either as a legal mortgage which was never perfected by conveying the underlying assets, or by specifically creating a mortgage as an equitable mortgage.

In the first place it will enable the security to be by way of specific legal mortgage or charge on the company's land as well as by way of equitable floating charge on the rest of the assets.

References to "true" legal mortgages mean mortgages by the traditional common law method of transfer subject to a proviso in this manner, and references are usually made in contradistinction to either equitable mortgages or statutory mortgages.