— Part
III.
Business of Banking.
633
But an equitable mortgage by deposit may be readily extended, even by parol, so as to be an effectual security on the happening of such contingencies, or they may be provided for by a memorandum
Securities
of deposit in anticipation {a).
Advanc es.
Sect. 18.
for
1277. Land, freehold or leasehold, may be equitably mortgaged (6) Mode of by deposit of the title-deeds, with or without a memorandum. A °^ortgagmg.
memorandum
is usually taken (c). The possession of the title-deeds would, in ordinary cases, preclude a subsequent legal mortgagee from obtaining priority for an advance (d) In registry counties (e), however, if a memorandum be taken Where " conveyance," and registration is necessary to secure it is a ^e?e^ary°^ priority (/). Letters from an intending mortgagor, if they amount to an undertaking to deposit deeds as security, may constitute a " conveyance " and so require registration but deposit of deeds (g) w^ithout memorandum or anything equivalent is not a " conveyance " (/<). In the Yorkshire Kegistry district, however, an equitable mortgage by mere deposit is inoperative as against a subsequent registered assurance, unless a specified memorandum is signed by the mortgagor and registered (i). Title-deeds of land not being negotiable securities, the banker can, as a rule, acquire no better title to them than the person who deposits them had. Title may in some cases, however, be gained .
{k). The existence of an equitable mortgage by deposit gives the right to call for a legal mortgage, or can be enforced by application to the Court for foreclosure or sale {I), or a power to sell may be given by an accompanying memorandum.
by estoppel
(1861), 3
De
G. F.
&
be made to him, and
where a person deposited title-deeds for advances to was held that the security did not cover advances made
J. 629, it
him and others whom he took into partnership. As to changes in the constitution of joint this relation, see title Guarantee.
to
(a)
stock or other corporations in
(6) For the general law as to equitable mortgages of land, see title Mortgage. For forms of memorandum of deposit, see Encyclopaedia of Forms, Vol. II., pp. 478—486. (c)
If the title-deeds are not actually deposited,
a
(Ex loarte Hall, Be Whitting (1878), 10 Oh. D. 615 Beetham (1887), 18 Q. B. D. 766). (d) (e)
Oliver v. Hinton, [1899] 2 Ch.
For these see
title
264
Jared
memorandum is essential Ex parte Broderick, Be
v. Clements,
[1903]
1
Ch. 428.
Keal Property and Chattels Real.
(/) Credland v. Potter (1874), 10 Ch. App. 8. Compare Be Calcott and Elvin, [1898] 2 Ch. 460. {g) Fullerton v. Provincial Bank of Ireland, [1903] A. C. 309, iji) Sumpter v. Cooper (1831), 2 B. & Ad. 223 Be Burke (1881), L. R. 9 Ir. 24. Recognised as law in Fullerton v. Provincial Bank of Ireland, supra ; see per Lord
Davey, (i)
at p. 314. Battison v. Holson, [1896] 2 Ch. 403
48 Vict.
c.
Yorkshire Registries Act, 1884 (47
&
54).
Brocklesby v. Temperance Permanent Building Society, [1895] A. C. 173 ; E.g., a person intrusts another with titlev. Wehster, [1902] 2 Ch. 163. deeds lor the purpose of raising money on them for the principal's benefit. He is estopped Irom disputing the title of anyone who honestly lends on the security, though the agent borrows money on the deeds on his own account and exceeds a limit imposed by the principal ; compare Lloyd's Bank v. Cooke, [1907] 1 K. B. For full treatment of this subject, see title Agency, pp. 201 et seq., ante. 794. (l) York Union Banking Co. v. Artley (1879), 11 Ch. D. 205 ; TFade v. JVilson (1882), 22 Ch. 1). 235. (k)
Bimmer
