gageor's interest in the property, created subsequently to the recording of the mortgage.

N. Y. C. C., Sec. 1619.

SEC. 2930. A mortgage does not entitle the mortgagee to the possession of the property, unless authorized by the express terms of the mortgage, but after the execution of the mortgage the mortgageor may agree to such change of possession without a new consideration.

N. Y. C. C., Sec. 1620.

Mortgage entitle

does not

mortgagee

to possession

SEC. 2931. A mortgagee may foreclose the right of Foreclosure. redemption of the mortgageor, in the manner prescribed by the CODE OF CIVIL PROCEDure.

N. Y. C. C:, Sec. 1621.

SEC. 2932. No person whose interest is subject to the Waste. lien of a mortgage may do any act which will substantially impair the mortgagee's security.

N. Y. C. C., Sec. 1622.

ARTICLE II.

MORTGAGE OF REAL PROPERTY.

SECTION 2936. Mortgage of real property defined.

2937. How created.

2938. Form of mortgage.

2939. Mortgage not a personal obligation.

2940. By whom paid after property passes by succession or will.

2941. How acknowledged and recorded.

2942. Chaps. IV and V, on recording, etc., applied.

2943. Encumbrances protected by recording laws.

2944. Encumbrances presumed to be acquired in good faith, etc.

2945. Subsequently acquired title inures to mortgagee.

2946. What must be recorded as mortgage.

2947. Recording assignment of mortgage.

2948. Mortgage, how discharged.

2949. Same.

2950. Same.

2951. Penalty for not acknowledging satisfaction.

SEC. 2936. A mortgage of real property is called a real Mortgage of

mortgage.

[New section.]

real prop erty defined.

SEC. 2937. A real mortgage can be created only by writing, with the formalities and requisites necessary in the case of the execution of a real instrument.

mortgagee, witnesseth:

[I.] That the mortgageor mortgages to the mortgagee [here describe the property], as security for the payment to him of dollars, on [or before] the

day of in the year with interest thereon [or, as security for the payment of an obligation, describing it, etc.]

[If a power of sale is to be given, add,] II. That in case of the non-payment of the principal sum, or of any part of the interest thereon, when due, the mortgagee may enter upon and sell the property above described, in the manner prescribed by the CIVIL CODE and the CODE OF CIVIL PROCEDURE of this State, and apply the proceeds of such sale to the satisfaction of the amount due under this mortgage, and of the expenses of the sale; the residue to be forthwith paid to the mortgageor.

[If the interest clause is to be inserted, add,] III. That if the interest upon the principal sum mentioned herein is not fully paid as it falls due, the entire principal shall become immediately due and payable, at the option of the mortgagee.

[If the insurance clause is to be inserted, add,] IV. That the mortgageor shall, at his own expense, keep the [buildings] on the said property insured against fire in a reput able insurance office, for the benefit of the mortgagee, to the extent of dollars, until this mortgage is paid

or otherwise extinguished.

Witnessed by:
E-

F

SEC. 2939. A real mortgage does not bind the mort gageor personally to perform the act for the performance of which it is a security, unless there is an express cov enant therein to that effect.

N. Y. C. C., Sec. 1624.

NOTE.-Strike out "real," and put this section in preceding article.

By whom property

paid after

passes by

SEC. 2940. When real property, subject to a mortgage, passes by succession or will, the successor or devisee must satisfy the mortgage out of his own property, without succession resorting to the executor or administrator of the mortgageor, unless there is an express direction in the will of the mortgageor, that the mortgage shall be otherwise paid.

N. Y. C. C., Sec. 1625.

SEC. 2941. A real mortgage may be acknowledged or proved, certified and recorded, in like manner with grants, except that they must be recorded in books kept for mortgages exclusively.

N. Y. C. C., Sec. 1626.

SEC. 2942. For the purpose of determining the right to record, the effect of recording or non-recording, a mortgage is deemed a real instrument, and is governed by the chapters on Recording Transfers of Real Property, and Unlawful Transfers.

or will.

SEC. 2943. Encumbrances protected by the recording Encumlaws are defined in Sec. 1114 of this Code.

SEC. 2944. An encumbrance is prima facie presumed to be acquired in good faith, in like manner with a recorded instrument mentioned in Sec. 1206, but the encumbrancer must show, as against an unrecorded instrument, that the debt or obligation secured by the encumbrance was an actual bona fide debt or obligation, existing at the time of creating the encumbrance, and be subject to the rules mentioned in Secs. 1207 and 1208.

[New section.]

SEC. 2945. Title acquired by the mortgageor, subsequent to the execution of the mortgage, inures to the mortgagee as security for the debt, in like manner as if acquired before the execution. The priority of application of such subsequently acquired title to successive mortgagees is determined by the existing rules of priority when no title is subsequently acquired. This section applies to other encumbrances in like manner with

brances protected by recording laws.

Encumsumed to be

brances pre

acquired in

good faith,

etc.

Subsequent.

ly acquired

title inures

to mortgagee

What must

be recorded

SEC. 2946. Every grant of real property, or of any as mortgage. estate therein, which appears, by any other writing, to be intended as a mortgage, within the meaning of Chap. I of this Title, must be recorded as a mortgage; and if such grant and other writing explanatory of its true character are not recorded together, at the same time and place, the grantee can derive no benefit from such record. N. Y. C. C., Sec. 1628.

Recording assignment

SEC. 2947. An assignment of a real mortgage may be of mortgage. recorded in like manner with a mortgage, but in a separate book. Such assignment cannot be recorded unless executed, acknowledged or proved, with the same for malities as grants of real property. When recorded, it operates as notice to all persons subsequently deriving title to the mortgage from the assignor.

Mortgage, how ischarged.

Same.

Same.

N. Y. C. C., Sec. 1629.

SEC. 2948. A recorded real mortgage may be dis charged by an entry in the margin of the record thereof, signed by the mortgagee or his personal representative or assignee, acknowledging the satisfaction of the mortgage in the presence of the Recorder, who shall certify the acknowledgment in form substantially as follows: "Signed and acknowledged before me, this day of

in the year

name thereto.

[New section.]

;" and he shall affix his official

Based on "Conveyances," Sec. 37.

SEC. 2949. A recorded real mortgage, if not discharged as provided in the preceding section, must be discharged upon the record, by the officer having custody thereof, on the presentation to him of a certificate signed by the mortgagee, his personal representatives or assigns, acknowledged, or proved and certified, as prescribed by the chapter on Recording Transfers, stating that the mortgage has been paid, or otherwise satisfied and discharged.

N. Y. C. C., Sec. 1630; "Conveyances," Sec. 38.

SEC. 2950. A certificate of the discharge of a real mortgage, and the proof or acknowledgment thereof, must be recorded at length, and a reference made in the record, to the book and page where the mortgage is recorded, and in the minute of the discharge made upon the record

of the mortgage, to the book and page where the discharge is recorded.

N. Y. C. C., Sec. 1631; "Conveyances," Sec. 39.

SEC. 2951. In satisfying a recorded real mortgage, each person who appears from the record to be an owner or part owner of the mortgage, or the personal representatives of such owner or part owner, must acknowledge satisfaction of such mortgage, as provided in this chapter, within seven days after demand therefor, from any person interested in the property or in any lien thereon; and if he neglects or refuses to make such acknowledgment within the time mentioned, he shall pay one hundred dollars to the party making the demand, and all damages occasioned by such neglect or refusal. The person making the demand must first tender to the acknowledging party his reasonable charges in that behalf.

"Conveyances," Sec. 40.

NOTE. Put the penal part of this section in chapter on
Penal Damages.

503

Penalty for edging sat

Lot acknowl.

isfaction.

ARTICLE III.

PERSONAL MORTGAGE.

SECTION 2956. Mortgage on personal property, a personal mortgage.

2957. Property subject to.

2958. Same.

2959. How created.

2960. Power of attorney to execute.

2961. Form of.

2962. Must be authenticated.

2963. Must be recorded.

2964. Other sections on recording made applicable.

2965. Recorded in different places.

2966. Time allowed for travel to Recorder's office.

2967. Property in transit exempt.

2968. Property of common carrier, where recorded.

2969. Property exempt from operation of the mortgage, when.