Original scientific paper
Maximum Amount Mortgage
Zoran P. Rašović
; Faculty of Law, University of Montenegro, Podgorica, Montenegro
Abstract
Maximum amount mortgage is a subtype of mortgage for the securing, to the maximum amount, of one or more claims whose total amount is not specified at the moment of concluding a mortgage loan contract, but can be specified. It is used for securing claim(s) whose total amount cannot be known at the moment of entering into contract so an approximate amount is stipulated instead.
Maximum amount mortgages are mostly characterised by their connection to a specifiable claim. This way they derogate to a substantial degree two traditional principles of security interests on real property: accessoriness (by securing future planned and possible claims) and speciality (at the moment of placing a mortgage lien the claim is not specified, but is specifiable). Certainly, these special characteristics entail differences in relation to the so-called fixed-rate mortgage. This primarily pertains to the stage in which the mortgage is created both in terms of the contents of the mortgage contract and entry into the cadastral register.
Unspecifiedness and the maximum possible amount of claim guaranteed by a maximum mortgage are its main peculiarities. The amount of claim can remain unspecified for a longer period, even for as long as the mortgage is “concealed”, i.e. during the pre-settlement phase. However, in the settlement phase the amount of claim, paid from the value of the mortgaged property, can no longer remain unspecified, at least in terms of the principal.
Maximum mortgage is usually constituted as a guarantee mortgage, a credit mortgage, or as one of the two variants of the continuous-repayment mortgage. It can also be constituted as one of the following: a mortgage for own or another’s debt; annuity mortgage; mortgage on state-owned property; joint mortgage; mortgage on civil fruits; submortgage; public notary mortgage (on the basis of an agreement between parties); public notary mortgage on a vessel or an aeroplane or a yacht on the basis of an agreement between parties; mortgage on the basis of a directly enforceable public notary act; mortgage on a property under construction, etc.
Keywords
mortgage; maximum amount mortgage; real property law; Montenegro
Hrčak ID:
153014
URI
Publication date:
30.12.2015.
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