X, the owner of an agricultural land, borrowed ₹ 5 lakh from Y. To secure the loan, X executed an Usufructuary Mortgage in Y's favour, putting Y in possession of the land with the right to collect rents and profits until

The essential features of a usufructuary mortgage under section 58(d) of the Transfer of Property Act, 1882 are as follows: Where the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property or any part of such rents and profits and to appropriate the same in lieu of interest, or in payment of the mortgage -money, or partly in lieu of interest or partly in payment of the mortgage-money, the transaction is called an usufructuary mortgage and the mortgagee an usufructuary mortgagee. Alternate Answer The essential features of a usufructuary mortgage under section 58(d) of the Transfer of Property Act, 1882 are as follows: Possession of the mortgaged property is delivered by the mortgagor to the mortgagee, or the mortgagee is expressly or impliedly authorised to take possession; The mortgagee is entitled to retain possession until payment of the mortgage money; The mortgagee is authorised to receive rents and profits accruing from the property; Such rents and profits are to be appropriated towards interest, or in payment of the mortgage money, or both; and There is no personal liability on the mortgagor to repay the mortgage money unless expressly agreed.