§ 4121. Power of sale A power of sale may be conferred by a mortgage upon the mortgagee or any other person, to be exercised after a breach of the obligation for which the mortgage is a security. § 4122. Power of attorney to execute A power of attorney to execute a mortgage must be in writing, subscribed, acknowledged, or proved, and certified in the manner prescribed by chapter 27 of this title, and recorded in the office of the registrar of property. § 4123. Validity of mortgage with respect to third persons A mortgage of property is void as against creditors of the mortgagor and subsequent purchasers and encumbrances of the property in good faith for value, unless it is acknowledged or proved and certified in the manner prescribed by chapter 27 of this title, and recorded in the office of the registrar of property of the Canal Zone. § 4124. Recording assignment of mortgage; notice An assignment of a mortgage may be recorded in like manner as a mortgage, and the record operates as notice to all persons subsequently deriving title to the mortgage from the assignor. § 4125. Recording assignment of mortgage not notice to mortgagor; validity of payments When the mortgage is executed as security for money due, or to become due, on a promissory note, bond, or other instrument designated in the mortgage, the record of the assignment of the mortgage is not, of itself, notice to a mortgagor, his heirs, or personal representatives, so as to invalidate any payment made by them, or either of them, to the person holding the note, bond, or other instrument. § 4126. Mortgage passes by assignment of debt The assignment of a debt secured by mortgage carries with it the security. § 4127. Discharge; marginal entry; form A recorded mortgage may be discharged 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 registrar of property, who shall certify the acknowledgment in form substantially as follows: "Signed and acknowledged before me, this in the year A. B., Registrar of Property." day of § 4128. Same; recording certificate of payment, satisfaction, or discharge A recorded mortgage, if not discharged as provided in section 4127 of this title, 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 chapter 27 of this title, stating that the mortgage has been paid, satisfied, or discharged. 84129. Duty of mortgagee on satisfaction of mortgage When a mortgage has been satisfied, the mortgagee or his assignee shall immediately, on the demand of the mortgagor, execute, acknowledge, and deliver to him a certificate of the discharge thereof, so as to entitle it to be recorded, or he shall enter satisfaction, or cause satisfaction of the mortgage to be entered of record. A mortgagee, or assignee of the mortgagee, who refuses to execute, acknowledge, and deliver to the mortgagor the certificate of discharge, or to enter satisfaction, or cause satisfaction of the mortgage to be entered, as pro vided in this chapter, is liable to the mortgagor, or his grantee or heirs, for all damages which he or they may sustain by reason of the refusal, and shall also forfeit to him or them the sum of $100. The mortgagee, his assignee, or personal representative, shall deliver to the mortgagor, his heirs, successors, or assigns, the mortgage and the note so paid or satisfied. For filing and entering the certificate of discharge, or satisfaction, the registrar shall be entitled to a fee of 50 cents. This section does not apply to the payment, satisfaction and discharge of mortgages of personal property under section 4163 of this title. § 4130. Bottomry and respondentia excluded from chapter Contracts of bottomry or respondentia, although in the nature of mortgages, are not affected by this chapter. Subchapter II-Mortgages of Personal Property § 4151. Mortgageable personal property Mortgages may be made upon all growing crops, including fruit, and upon any and all kinds of personal property, except articles of wearing apparel and personal adornment. § 4152. Stock in trade of merchant Where a mortgage is made upon the stock in trade of a merchant, it shall be deemed, in the absence of a contrary intention, to cover goods subsequently acquired; and purchasers from the mortgagor in good faith and in the usual course of business are not liable to the mortgagee. § 4153. Form of personal property mortgage A mortgage of personal property may be made in substantially the following form: This mortgage, made the day of in the year A B, of, by occupation a -, mortgagor, to C Ď, of occupation a mortgagee, witnesseth: by by That the mortgagor 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 a note or obligation, describing it, and so forth) A B. § 4154. Essentials for validity as to third persons A mortgage of personal property is void as against creditors of the mortgagor and subsequent purchasers and encumbrancers of the property in good faith and for value, unless: (1) it is accompanied by the affidavit of all the parties thereto that it is made in good faith and without any design to hinder, delay, or defraud creditors; (2) it is acknowledged or proved and certified in the manner prescribed by chapter 27 of this title; and (3) it, or a true copy, is filed in the office of the registrar of property of the Canal Zone. 84155. Duties of registrar with respect to filing; fee (a) The registrar of property shall: (1) mark upon the mortgage of personal property, or copy, filed with him, the day and hour of filing; (2) file the mortgage, or copy, in his office for public inspection; (3) keep a separate book and enter therein the names of the mortgagor and mortgagee, the date of the mortgage, the day and hour of filing, a brief description of the property mortgaged and the amount of the mortgage; and (4) index the book referred to in paragraph (3) of this subsection under the names of both mortgagor and mortgagee. (b) For filing and entering a mortgage of personal property or copy thereof, or an assignment of such a mortgage, the registrar shall be entitled to a fee of $1. § 4156. Filing assignment of mortgage; notice An assignment of a mortgage of personal property may be filed in like manner as a mortgage of personal property, and each filing operates as notice to all persons subsequently deriving title to the mortgage from the assignor. When a mortgage of personal property is executed as security for money due, or to become due, on a promissory note, bond, or other instrument designated in the mortgage, the filing of the assignment of the mortgage is not, of itself, notice to a mortgagor, his heirs, or personal representatives, so as to invalidate any payment made by them, or either of them, to the person holding the note, bond, or other instrument. § 4157. Removal of mortgaged property from Canal Zone A mortgagor may not remove or permit the removal of mortgaged property from the Canal Zone without the written consent of the mortgagee. § 4158. Foreclosure of mortgage; manner A mortgagee of personal property, when the debt to secure which the mortgage was executed becomes due, may foreclose the mortgagor's right of redemption by a sale of the property, made in the manner and upon the notice prescribed by chapter 101 of this title, or by proceedings pursuant to sections 1731-1734 of Title 5. 84159. Attachment or execution upon mortgaged property Personal property mortgaged may be taken under attachment or execution issued at the suit of a creditor of the mortgagor in the manner provided by section 569 of Title 5. § 4160. Inapplicability of sections 4154-4157 to certain ships and aircraft Sections 4154-4157 of this title do not apply to any mortgage of a ship or part of a ship under the flag of the United States, nor to any mortgage of an aircraft, or part thereof, licensed or registered under the laws of the United States. § 4161. Continuance of lien of mortgage on crops The lien of a mortgage on a growing crop continues on the crop after severance, whether remaining in its original state or converted into another product, as long as the same remains on the land. 84162. Validity of certain mortgages Mortgages of personal property, other than that upon which mortgages are authorized to be made by section 4151 of this title, and mortgages not made in conformity with this subchapter, are nevertheless valid between the parties, their heirs, legatees, and personal representatives, and persons who, before parting with value, have actual notice thereof. 84163. Discharge of mortgage of personal property Upon the payment or satisfaction of a mortgage of personal property, the mortgagee, his assignee, or legal representative, upon the request of the mortgagor or of any person interested in the mortgaged property, must execute, acknowledge, and deliver to the person requesting it a certificate setting forth the payment or satisfaction. If the mortgagee, his assignee, or legal representative refuses to execute, acknowledge, and deliver to the mortgagor or other person interested in the mortgaged property the certificate provided for in this section he shall forfeit to the person requesting the certificate the sum of $5 and be liable for all damages suffered by reason of the refusal. Upon presentation of the certificate of payment or satisfaction to the registrar of property, he shall file it and note the discharge of the mortgage and the date thereon on the margin of the page where the mortgage has been entered. For filing and entering the certificate of payment or satisfaction, the registrar shall be entitled to a fee of 50 cents. 4205. Extent of lienor's pledge. 4206. Pledgee's rights as against real owner. 4207. Rights of owner pledging to secure obligation of another person. 4208. Deposit of pledged property with third person as pledge holder. 4209. Withdrawal of pledged property by pledge lender. 4210. Obligations of pledge holder. 4211. Enforcement of pledgee's rights by pledge holder. 4212. Obligation of pledgee and pledge holder for reward. 4213. Gratuitous pledge holder. 4214. Debtor's misrepresentation of value of pledge. 4215. When pledgee may sell. 4216. Demand for performance as condition precedent to sale. 4217. Notice of sale to pledgor. 4218. Waiver of notice of sale. 4219. Waiver of demand for performance. 4220. Manner of sale. 4221. Pledgee's sale of securities; collection. 4222. Sale on demand of pledgor. 4223. Payment of surplus to pledgor after sale. 4224. Retention, by pledgee, of all that can become due. 4225. Purchase of property by pledgee or pledge holder. 4220. Foreclosure, by judicial sale, of right of redemption. § 4201. Definition Pledge is a deposit of personal property by way of security for the performance of another act. § 4202. Certain contracts as pledges Every contract by which the possession of personal property is transferred, as security only, is to be deemed a pledge. § 4203. Delivery of property as essential The lien of a pledge is dependent on possession, and a pledge is not valid until the property pledged is delivered to the pledgee, or to a pledge holder, as hereinafter prescribed. 8 4204. Increase The increase of property pledged is pledged with the property. § 4205. Extent of lienor's pledge One who has a lien upon property may pledge it to the extent of his lien. § 4206. Pledgee's rights as against real owner One who has allowed another to assume the apparent ownership of property for the purpose of making any transfer of it, may not set up his own title, to defeat a pledge of the property, made by the other, to a pledgee who received the property in good faith, in the ordinary course of business, and for value. § 4207. Rights of owner pledging to secure obligation of another person Property may be pledged as security for the obligation of a person other than the owner, and in so doing the owner has all the rights of a pledgor for himself, except as hereafter stated in this chapter. § 4208. Deposit of pledged property with third person as pledge holder A pledgor and pledgee may agree upon a third person with whom to deposit the property pledged, who, if he accepts the deposit, is called a pledge holder. § 4209. Withdrawal of pledged property by pledge lender One who pledges property as security for the obligation of another may not withdraw the property pledged otherwise than as a pledgor for himself might, and if he receives from the debtor a consideration for the pledge he cannot withdraw it without his consent. § 4210. Obligations of pledge holder A pledge holder for reward may not exonerate himself from his undertaking; and a gratuitous pledge holder may do so only by giving reasonable notice to the pledgor and pledgee to appoint a new pledge holder, and in case of their failure to agree, by depositing the property pledged with an impartial person, who will then be entitled to a reasonable compensation for his care of it. § 4211. Enforcement of pledgee's rights by pledge holder A pledge holder shall enforce all the rights of the pledgee, unless authorized by him to waive them. § 4212. Obligation of pledgee and pledge holder for reward A pledgee, or a pledge holder for reward, assumes the duties and liabilities of a depositary for reward. § 4213. Gratuitous pledge holder A gratuitous pledge holder assumes the duties and liabilities of a gratuitous depositary. § 4214. Debtor's misrepresentation of value of pledge Where a debtor has obtained credit, or an extension of time, by a fraudulent misrepresentation of the value of property pledged by or for him, the creditor may demand a further pledge to correspond with the value represented; and in default thereof may recover his debt immediately, though it be not actually due. § 4215. When pledgee may sell When performance of the act for which a pledge is given is due, in whole or in part, the pledgee may collect what is due to him by a sale of property pledged, subject to the rules and exceptions hereinafter prescribed. § 4216. Demand for performance as condition precedent to sale Before property pledged can be sold, and after performance of the act for which it is security is due, the pledgee shall demand performance thereof from the debtor, if the debtor can be found. § 4217. Notice of sale to pledgor A pledgee shall give actual notice to the pledgor of the time and place at which the property pledged will be sold, at such a reasonable time before the sale as will enable the pledgor to attend. 8 4218. Waiver of notice of sale Notice of sale may be waived by a pledgor at any time; but is not waived by a mere waiver of demand of performance. |