CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES · Marshalling and Contribution

Section 81: Marshalling securities

¹[If the owner of two or more properties mortgages them to one person and then mortgages one or more of the properties to another person, the subsequent mortgagee is, in the absence of a contract to the contrary, entitled to have the prior mortgage-debt satisfied out of the property or properties not mortgaged to him, so far as the same will extend, but not so as to prejudice the rights of the prior mortgagee or of any other person who has for consideration acquired an interest in any of the properties.]

Footnotes in the official text

1.Subs. by Act 20 of 1929, s. 42, for s. 81.

Questions on this section

1 question in 4 of our papers cite Section 81. Try these from the free papers:

1. Consider the following statements under the Transfer of Property Act, 1882: 1. Under Section 81, a subsequent mortgagee may require the prior mortgage-debt to be satisfied out of the property not mortgaged to him, but not so as to prejudice the prior mortgagee. 2. The rule of rateable contribution in Section 82 does not apply to a property liable under Section 81 to the claim of the subsequent mortgagee. 3. Under Section 93, a mortgagee who pays off a prior mortgage without notice of an intermediate mortgage acquires priority over it in respect of his original security. Which of the statements given above is/are correct?

Practise questions on Transfer of Property Act