Section 445
Property In Mortgage May Be Remortgaged
(1) A person who
has obtained a property in mortgage shall be entitled to remortgage
such property or any part thereof to another person in consideration
for an amount which is equal to, or lesser than, the amount
specified in the deed of mortgage, and in such a case, a re-mortgage
is deemed to have been created.
Provided that a mortgaged property shall not be the object of
re-mortgage prior to the existence of the possessory right in such
property.
(2) The period of possession and enjoyment of the remortgage
given pursuant to sub-section (1) shall not exceed the
period of possession and enjoyment under the mortgage.
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(3) If the debtor who has right and ownership in the
property intends to redeem the property re-mortgaged pursuant to
sub-section (1), the debtor may redeem the property upon payment
of the price directly from the re-mortgagee if the price of the remortgage
is equal to the original price and through the original
mortgagee if such price is less than the original price.
(4) Notwithstanding anything contained elsewhere in this
Section, the transaction of remortgage made inconsistent with the
terms of the mortgage shall ipso facto be void to the extent of such
inconsistency.
(5) If the creditor is not entitled to possess the property remortgaged
pursuant to this Chapter, the deed of such a re-mortgage
shall be equivalent to an unsecured bond (Kapali).