Question
Legal Studies Question on Property Law
Marshalling securities under Section 81 of the Transfer of Property Act, 1882 means the entitlement of subsequent mortgagee to have the prior mortgage debt satisfied out of the property:
A
Not mortgaged to him but to the prior mortgagee alone
B
Mortgaged commonly to him and to the prior mortgagee
C
Not mortgaged to him, but owned by the mortgager
D
None of the above
Answer
Not mortgaged to him but to the prior mortgagee alone
Explanation
Solution
Marshalling securities under Section 81 means that a subsequent mortgagee can have the prior mortgage debt satisfied from the property that was not mortgaged to him, but was mortgaged to the prior mortgagee.