Odger's English Common Law

30
PEIVATE RIGHTS.
landed under a wharf certificate which allows the lien so to
continue.
When one man is asked to lend money to another, he
naturally asks what security the borrower can offer for the
repayment of the loan ;
he is not, as a rule, content to advance
the money merely on the personal promise of the borrower
that he will repay it. The security offered may be either
land or things, and may be given in many different ways.
"We will deal here with the three most usual kinds of'
security :
—
(i.) Mortgage of land,
(ii.) Pledges of things,
(iii.) Hypothecation of land or things.
(i.) When money is advanced upon the security of land, a
deed of mortgage is usually drawn up between the borrower
and the lender, under which the borrower (called the
"mortgagor") transfers the legal title of the land to the
lender of the money (called the " mortgagee "). Although the
mortgagee has the right to immediately enter into possession
of the mortgaged land, he does not do so, but the mortgagor
is allowed to remain in possession of the land until he makes
default in.payment of the interest or debt. Such a transfer
of title is regarded merely as a security for the repayment of
the loan of money, and therefore the mortgagor can redeem
the land, even though the day fixed in the deed for redemp-
tion has passed. If he wishes to do this, he must give the
mortgagee six months' notice of his intention to repay the
loan with interest and costs, and on repayment he is entitled
to a reconveyance of the land. If the mortgagee refuses to
reconvey, the mortgagor can compel him to do so in an action
of redemption. But the mortgagee is always entitled to call
upon the mortgagor to redeem within a certain time, and on
his failing to do so can bring an action which may end in the
mortgagor being altogether deprived of his right of redemp-
tion. This is called "foreclosure." The mortgagee can also
enforce his security by selling the mortgaged land ; but before
he can do this, he must give notice to the mortgagor of his
intention to do so, if the debt and interest be not paid within