(1) If a debtor gives the whole
or any portion of an immovable property in which the debtor has
right, ownership or possession to a creditor in consideration for a
loan which the debtor borrows from the creditor, entitling the
creditor to possess that property with effect from the date of
execution of the deed or after a certain period, such property shall
be deemed to have been given in mortgage.
(2) If the deed provides that the creditor is entitled to
possess the property mortgaged pursuant to sub-section (1) with
immediate effect at the time of lending or after a certain period,
such a mortgage shall be deemed to be a mortgage with possession
(Bhogbandaki), and if the deed provides that the creditor is entitled
to possess the property in the event of the debtor’s default on
repayment of the loan within the deadline set by the creditor and the
debtor for repayment, such a mortgage shall be deemed to be a
mortgage without possession (Drishtibandhaki).
(3) A property to be mortgaged shall be of such nature as
may be capable of being enjoyed by the mortgagee.
(4) A person shall not mortgage a property in which he or
she has not right, ownership or possession or which he or she will
acquire in the future.