Section 68 of TPA : Section 68: Right To Sue For Mortgage-Money

Explanation using Example

Imagine John takes a loan from a bank and mortgages his house as security for the loan. He agrees to repay the loan in monthly installments. This is an example of case (a) where the mortgagor (John) binds himself to repay the mortgage money.

Now, suppose a natural disaster destroys half of John's house, significantly reducing its value. The bank assesses the situation and realizes that the remaining value of the house is not enough to cover the loan amount. The bank gives John a chance to provide additional security to cover the shortfall. However, John is unable to do so. This situation falls under case (b), allowing the bank to sue John for the mortgage money since the security has become insufficient and John failed to rectify it....

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