OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES

  “Mortgage,” “mortgagor,” “mortgagee,” “mortgage-money” and “mortgage-deed”defined  

58. (a) A mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.The transferor is called a mortgagor, the transferee a mortgagee; the principal money and interest of which payment is secured for the time being are called the mortgage-money, and the instrument (if any) by which the transfer is effected is called a mortgage-deed.

  Simple mortgage   (b) Where, without delivering possession of the mortgaged property, the mortgagor binds himqwself personally to pay the mortgage-money, and agrees, expressly or impliedly, that, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, so far as may be necessary, in payment of the mortgage-money, the transaction is called a simple mortgage and the mortgagee a simple mortgagee.

  Mortgage by conditional sale   (c) Where the mortgagor ostensibly sells the mortgaged property-

on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute, or

on condition that on such payment being made the sale shall become void, or

on condition that on such payment being made the buyer shall transfer the property to the seller,

the transaction is called a mortgage by conditional sale and the mortgagee a mortgagee by conditional sale:

Provided that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect the sale;

  Usufructuary mortgage   (d) Where the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee, and authorises 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 lieu 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 usufructuary mortgage and the mortgagee an usufructuary mortgagee.

  English mortgage   (e) Where the mortgagor binds himself to re-pay the mortgage-money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage

  Mortgage by deposit of title-deeds   (f) Where a person in the town of 16[ Dhaka, Narayangonj and Chittagong] and in any other town which the Government 17[ * * *] may, by notification in the official Gazette, specify in this behalf, delivers to a creditor or his agent documents of title to immoveable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title-deeds.

  Anomalous mortgage   (g) A mortgage which is not a simple mortgage, a mortgage by conditional sale, an usufructuary mortgage, an English mortgage or a mortgage by deposit of title-deeds within the meaning of this section is called an anomalous mortgage.

  Mortgage when to be by assurance  

59. Where the principal money secured is one hundred taka or upwards, a mortgage other than a mortgage by deposit of title-deeds can be effected only by a registered instrument signed by the mortgagor and attested by at least two witnesses 18[ :

Provided that a mortgage by deposit of title-deeds, where the mortgagee is the Government or a Scheduled Bank as defined in the Bangladesh Bank Order, 1972 or a financial institution as defined in the Financial Institutions Act, 1993, shall also be effected only by a registered instrument in the aforesaid manner 19[ :

Provided further that where in pursuance of a tripartite agreement between a buyer, a seller and a Scheduled Bank or financial institution, the buyer undertakes to buy a flat or floor space to be constructed or a plot of land to be developed by the seller (a real estate owner, firm or company), and the seller undertakes to transfer the flat or floor space or a plot of land, as the case may be, to the buyer by registered instrument upon construction or development, as the case may be, and the Scheduled Bank or financial institution undertakes to pay the price, or part of the price, of the flat or floor space or plot of land to the seller on behalf of the buyer, on condition, among others, that the flat or floor space to be constructed or the plot of land to be developed, and transferred to the buyer, shall be mortgaged to the Scheduled Bank or financial institution by deposit of title-deed as security against the money paid or to be paid to the seller on behalf of the buyer as loan, such mortgage by deposit of title-deed shall not be required to be effected by a registered instrument as aforesaid.]]

Where the principal money secured is less than one hundred taka, a mortgage may be effected either by a registered instrument signed and attested as aforesaid, or (except in the case of a simple mortgage) by delivery of the property.

  References to mortgagors and mortgagees to include persons deriving title from them  

20[ 59A. Unless otherwise expressly provided, references in this Chapter to mortgagors and mortgagees shall be deemed to include references to persons deriving title from them respectively.]

  Rights and Liabilities of Mortgagor

  Right of mortgagor to redeem  

60. At any time after the principal money has become due, the mortgagor has a right, on payment or tender, at a proper time and place, or the mortgage-money, to require the mortgagee (a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee, (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and (where the mortgage has been effected by a registered instrument) to have registered an acknowledgement in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished:

Provided that the right conferred by this section has not been extinguished by the act of the parties or by decree of a Court.

The right conferred by this section is called a right to redeem and a suit to enforce it is called a suit for redemption.

Nothing in this section shall be deemed to render invalid any provision to the effect that, if the time fixed for payment of the principal money has been allowed to pass or no such time has been fixed, the mortgagee shall be entitled to reasonable notice before payment or tender of such money.

  Redemption of portion of mortgaged property   Nothing in this section shall entitle a person interested in a share only of the mortgaged property to redeem his own share only, on payment of a proportionate part of the amount remaining due on the mortgage, except only where a mortgagee, or, if there are more mortgagees than one, all such mortgagees, has or have acquired, in whole or in part, the share of a mortgagor.