35-03-01.2. Nature, extent, and effect of lien - Security not to be impaired

35-03-01.2. Nature, extent, and effect of lien - Security not to be impaired

1. A mortgage is a lien upon everything that would pass by a grant of the property, and

upon nothing more.

2. A mortgage is a lien upon the property mortgaged in the hands of everyone claiming

under the mortgagor subsequently to its execution, except purchasers and

encumbrancers in good faith without notice and for value.

3. Real property held adversely to the mortgagor may be mortgaged, and such a

mortgage takes effect from the time at which the mortgagor or one claiming under the

mortgagor obtains possession of the property and has precedence over every lien

upon the mortgagor's interest in the property created subsequently to the recording of

the mortgage.

4. Title acquired by the mortgagor subsequent to the execution of the mortgage inures to

the mortgagee as security for the debt in like manner as if acquired before the

execution.

5. In the absence of an express covenant, a mortgage does not bind the mortgagor

personally to perform the act for the performance of which it is a security.

6. A mortgage does not entitle the mortgagee to the possession of the property, but after

the execution of a mortgage, the mortgagor may agree to the change of possession

without a new consideration.

7. The assignment of a debt secured by a mortgage carries the security with it.

8. No person whose interest is subject to the lien of a mortgage may do any act which

will substantially impair the mortgagee's security.