Herschel borrowed $500 000 from Minah. As security for the repayment of that loan, a mortgage was created over a piece of land called Blackacre. Which of the following statements is TRUE?
A) If Blackacre is located in a registry system, then the mortgage should be registered only if there is a possibility that it will not be repaid within three years.
B) Herschel must have owned Blackacre at the outset.
C) Herschel must have borrowed the $500 000 from Minah for the purpose of buying Blackacre.
D) If the mortgage created a charge on Blackacre, that piece of land must have been located in a land titles system.
E) Herschel is necessarily required to pay interest on the primary debt.
Correct Answer:
Verified
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