Question

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 1

The Correct Option is A

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.