Section 447
Mortgaging By Third Party On Behalf Of Debtor
(1) A third
person may, in consideration for a loan borrowed by a debtor,
mortgage a property in which the third person has right and
ownership to the creditor on behalf of the debtor.
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(2) The creditor shall, pursuant to this Chapter, be entitled
to possess and enjoy the property mortgaged pursuant to subsection
(1) as if it were the property mortgaged by the debtor to the
creditor.
(3) If a property is mortgaged by a third person pursuant to
sub-section (1), the relationship between the debtor and the third
person shall be governed by the deed of mortgage or other separate
contract, and in the default of such provision, such transaction shall
be equivalent to an unsecured bond (Kapali).