Which of the following is usufructuary mortgage:
Verified Answer
A. Where without delivery of the possession of the mortgage property binds himself to pay the mortgage money
B. Where without delivery of the possession to the mortgage but retains the profit of the property
C. Where mortgagor binds himself to repay the mortgage money on a certain date
D. None of the above
Explanation:
Section 58(d) of the Transfer of Property Act, 1882, defines a usufructuary mortgage as one where the mortgagor delivers possession of the mortgaged property to the mortgagee and authorizes him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property and to appropriate them in lieu of interest, or in payment of the mortgage-money, or partly in lieu of interest and partly in payment of the mortgage-money. None of the given options accurately describe a usufructuary mortgage.