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Ramla Borrowed $100 000 from Wilhelm

Question 12

Multiple Choice

Ramla borrowed $100 000 from Wilhelm. As security for repayment of that loan, she created a mortgage over a piece of land called Blackacre. Which of the following statements is TRUE?


A) Because he has both personal and property rights, Wilhelm has no reason to care if Ramla does not insure Blackacre.
B) In normal circumstances, Wilhelm will take possession of Blackacre immediately in order to protect the value of the security.
C) As long as Wilhelm has registered the mortgage, he has no reason to care if Ramla does not pay the property taxes on Blackacre.
D) If the mortgage contract contains a bonus clause, then Ramla will have to pay a penalty if she repays the loan quicker than agreed.
E) In normal circumstances, Wilhelm has the primary duty to refrain from committing an act of waste.

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