upon the mortgaged premises, and in case of the premises being destroyed or injured by fire, the moneys to be recovered on account of the insurance are to be applied in liquidation of the mortgage debt and interest: (see the form 2 Con. Prec., Part V., Section II., note B. to p. 48, 2nd edit.) This covenant is generally the last the mortgagor enters into, and is usually preceded by his covenant for further assurance.

Covenant that mortgage deed shall be duly acknowledged.] -Whenever it becomes necessary for the wife of a mortgagor to become a concurring party in a mortgage assurance for the purpose of passing, releasing, or extinguishing any estate, right, claim, or interest which she may possess or be entitled to in the mortgaged premises, it will be necessary for her to acknowledge the mortgage deed, and when such acknowledgment is necessary, her husband ought to covenant that such acknowledgment shall be made accordingly: (see the form 2 Con. Prec., Part V., Section II., No. III., clause A. in notis, p. 52, 2nd edit.)

Where mortgagor is to receive a reduced rate of interest in consideration of punctual payment.]-Where the mortgagor is to accept a reduced rate of interest in consideration of punctual payment, a covenant to that effect is sometimes entered into by the mortgagee in substitution for, or in addition to, the proviso to that effect. The proper place for this covenant is at the end of the mortgage deed: (see the form 2 Con. Prec., Part V., No. II., clause C., p. 49, in notis, 2nd edit.)

Where mortgage is to secure a banking account.]—Where the mortgage is to secure the balance of a banking account, the bankers should covenant to produce an account on request, and to reconvey the mortgaged premises on payment, which account the mortgagor should covenant to pay off upon receiving due notice: (see the form 2 Con. Prec., Part V., Section II., No. XII., clauses 6 and 7, pp. 99, 100, 2nd edit.)

Covenant to produce title deeds.]—A mortgagee is some times induced to enter into a covenant to produce the title deeds, without which the mortgagor can neither compel such production, or oblige the mortgagee to supply him with an abstract of them. A covenant of this kind therefore is particularly important where a large property is in

mortgage, which is designed to be sold in portions or allotments, or granted for building leases, and which, notwithstanding the mortgagor may be authorized to grant by the terms of the mortgage, the mortgagee may have the power of preventing his carrying into effect, by withholding sight of the deeds, and refusing to supply an abstract, without which no title could be shown to the property, and without which few persons would be inclined to become purchasers, or to take leases of it. A covenant of the above kind is usually inserted at the end of the deed after the covenants that the mortgagor shall enjoy until default: (see the form 2 Con. Prec., Part V., Section II., No. I., clause G. in notis, p. 42, 2nd edit.)

Not to grant leases without notice.]—Where the mortgagor is to be empowered to make leases, it is also usual for him to covenant that, before granting the same, he will give due notice thereof to the mortgagee: (see the form 2 Con. Prec., Part V., Section II., No. I., clause F. in notis, p. 42, 2nd edit.)

8. Special Powers.

Special powers adapted to mortgage securities.]—In addition to powers of sale, which are now generally inserted in every mortgage deed, certain special powers are sometimes employed; such as a power to grant leases, which in the absence of an authority of this kind neither mortgagor nor mortgagee can grant so as to be binding with the concurrence of the other: (Cobb v. Carpenter, 5 Camp. N. P. C. 13.) Other special powers which are sometimes inserted in mortgage assurances are, to cut down timber, and to appoint bailiffs, receivers, &c.

Powers of leasing, how usually inserted in the mortgage deed.]-Powers of leasing are sometimes inserted immediately after the proviso for redemption, sometimes after the powers of sale; but the proper place seems to be the very end of the deed, after the insertion of all the usual covenants, and to follow the covenant that the mortgagor shall enjoy until default; still, the situation is not very material, if the nature and object of the power itself be clearly expressed.

Where power of leasing is reserved to mortgagor.]—Where the mortgagor is to retain the power to grant leases, the clause creating this power generally provides, that so long as he shall remain in the possession or receipt of the rents

and profits of the mortgaged premises, he may demise the same for some stated period, or for a term not exceeding a certain number of years. As a protection to the mortgagee, it is usually provided that the full yearly rent shall be reserved, and that no fine, premium, or forgift shall be taken as a consideration for the granting of such lease, and that the lessee shall not be made dispunishable for waste (see the form 2 Con. Prec., Part V., Section II., No. I., clause D., in notis, p. 41, 2nd edit.); for without these restrictions, a mortgagor, by granting leases for a long term at a low rent, in consideration of a heavy fine or premium, and at the same time authorizing the lessees to commit waste, might very materially prejudice the mortgagee's interest, and so reduce the yearly value of the profits of the property as to afford means not only inadequate to discharge the mortgage debt, but even to keep down the full amount of interest upon it.

Practical suggestions as to the propriety of requiring mortgagor to give mortgagee written notice previous to every letting.]-In some forms, a proviso is inserted stipulating that the terms of the letting shall be communicated in writng to the mortgagee within a certain number of days after the same shall have been made; but as this might possibly raise a question as to the valid exercise of the power if the lessee was to be put to the proof of such notice, the better plan appears to be to omit this latter proviso, and in lieu of it to insert a covenant from the mortgagor not to exercise the power without giving such notice, and at the same time to provide that no lessee shall be in anywise prejudiced thereby: (see the form 2 Con. Prec., Part V., Section II., No. I., clause F., in notis, p. 42, 2nd edit.; see also 1 Hughes Pract. Mort., p. 142, in notis.)

Where leasing power is to be conferred upon the mortgagee.] -If the power of leasing is to be given to the mortgagee, it should be provided that, after default, and so long as the mortgage debt shall remain unpaid, it shall be lawful for the mortgagee to grant leases of the mortgaged premises not exceeding some specified number of years, upon the terms therein specified: (see the form 2 Con. Prec., Part V., Section II., No. I., clause C., in notis, p. 40, 2nd edit.; see also 1 Hughes Pract. Mort., clause 7, p. 145.)

Renewal of leases for lives.]-In some manors a tenantright to the renewal of leases exists; and in others, although no such right can be actually established, still it has been

customary to grant renewed leases on the dropping of any of the lives upon the payment of a fine, sometimes arbitrary, at others, a certain fixed sum. Now, most mortgagors who are possessed of large landed possessions are averse to their tenants, or in fact any one else, knowing that their property is so incumbered, and as they cannot renew any leases effectually (unless under a leasing power reserved to them by the mortgage deed) without the mortgagee's concurrence, their attempting to do so, in the absence of such power, would be an act of serious injustice to the tenants, who, as they never require the production of their lessor's title on such occasions, have no direct means of ascertaining that he has incumbered the property, and who, after having paid the fine, and obtained their renewed leases, may still be ejected by the mortgagee, and thus lose all the benefit of such renewal, for which they may have paid many years' actual value of the property. In cases of the above kind, and where the property is otherwise of ample value, it may often be important to reserve a power to the mortgagor to renew such leases so long as he shall continue in the actual possession of the mortgaged premises: (see the form 1 Hughes Pract. Mort. p. 142, clause 2.)

Building leases.]-Where the mortgagor is to have a power of granting building leases, the clause usually provides, that it shall be lawful for the mortgagor, as well before as after default in payment, so long as he continues in possession of the mortgaged premises, to grant building leases of the same for some stated period, usually an absolute term of ninety-nine years, or for that term determinable upon three lives; but in order to prevent the mortgagor from deteriorating from the yearly value by reserving a low rent in consideration of a premium or forgift, it is generally stipulated that the lessor shall not take any such premium or forgift for the making of such lease, and that the lessee shall enter into a covenant to pay the reserved rents, and to keep and leave the buildings to be erected on the demised premises in good and tenantable repair, that the lessees shall not be made dispunishable for waste, and that there shall be a proviso for re-entry for breach of any of the covenants in such lease contained: (see the form 1 Hughes Pract. Mort., clause 3, p. 143.)

Power to grant mining setts.]—Where a mortgagor is to have a power to grant mining setts, it is usual to provide that the grant shall be subject to such reservations, powers,

and stipulations as are usual in mining setts according to the custom of the country in which the mortgaged premises are situated: (see the form 2 Con. Prec., Part II., Section II., No. I., clause E., p. 41, 2nd edit.)

Power to cut down timber.]—Where a mortgagor is empowered to cut down timber, the power is usually restricted to the purpose of repairs upon the mortgaged premises (see the form 1 Hughes Pract. Mort., p. 144, clause 5), and even this is often confined to some specified value, which, if the mortgagor exceeds, such excess is to be considered as waste: (see the form 1 Hughes Pract. Mort., p. 144, clause 6; 2 Con. Prec., Part V., Section II., No. XV., clauses B. and C., pp. 115, 116, in notis, 2nd edit.)

Power to appoint receivers.]-The clause authorizing the appointment of a receiver is seldom employed except in the case of the mortgage of estates of large value. It may, however, be very concisely penned, simply setting forth that the mortgagee is authorized to employ an agent or receiver to act on his behalf in the execution of the trusts and powers of the mortgage, with such salary or allowance as the mortgagee may think proper, with a power of revoking such appointment whenever he may think proper so to do: (see the form 1 Hughes Pract. Mort., p. 145, clause 8.)

IV. MORTGAGES BY DEMISE.

How mortgages by demise are usually penned.]--Mortgages by demise do not usually contain any recitals, unless in those cases where a mortgagor demises in exercise of a power of appointment, in which latter case the deed creating the power is recited; but in other instances the testatum clause immediately follows the description of the parties (see the form 1 Con. Prec., Part V., Section II., No. IV., clauses 1 and 2, p. 54, 2nd edit.)

:

Operative words.]-The usual operative words in a mortgage by demise are grant, bargain, sell, and demise,”

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which assurance, when the terms "bargain" and "sell" are both used, operates as a bargain and sale, thus vesting the possession in the mortgagee without entry under the Statute of Uses (27 Hen. 8), and not as a demise at common law; the latter of which, until the entry of the grantee, passes no more than an interesse termini in the premises. Some gentlemen have indeed thought proper to exercise a