MORTGAGES ACT, 1972

(1) A mortgage for the purposes of this Act is a contract charging immovable property as security for the due repayment of a debt and the interest accruing on the debt or for the performance of any other obligation for which it is given, in accordance with the terms of the contract. (2) A mortgage is an encumbrance on the property charged, and does not, except as provided by this Act, operate so as to change the ownership, right to possession or any other interest, whether present or future in the property charged. (3) A mortgage may be created in an interest in immovable property which is alienable.

(1) A mortgage of immovable property is only capable of being effected in accordance with this Act, and a transaction which is in substance a mortgage of immovable property, whether expressed as a mortgage, charge, pledge of title documents, outright conveyance, trust for sale on condition, lease, hire-purchase, conditional sale, sale with right of repurchase or in any other manner is, for the purposes of the Act, a mortgage of immovable property and is governed by this Act. (2) A customary loan transaction in respect of which a farmland is given as security for the loan shall be made in accordance with this Act.2(2)