Mortgage

Thus, in a legal mortgage, title to the property is transferred to the mortgagee subject to the proviso that the mortgaged property would be reconveyed by the mortgagor to the mortgagee upon the performance of the conditions stipulated in the mortgage deed and upon payment of the debt at the time stipulated therein. The mortgagor is liable to repay the loan as stipulated, otherwise the mortgaged property is foreclosed. See: Prince Abdul Rasheeed Adetono & Anor. Vs Zenith International Bank Plc. (2010) LPELR-8237 (SC) 1 @ 21 A – C: (2011) 18 NWLR (Pt.1279) 627.

The nature of a legal mortgage and its legal consequence was correctly stated by the Court of Appeal in: Bank of the North Vs Bello (2000) 7 NWLR (Pt. 664) 244 @ 257 D, where it was held that:
A mortgage is defined as the creation of an interest in a property defeasible (i.e. annullable) upon performing the condition of paying a given sum of money with interest at a certain time. The legal consequence of the above definition is that the owner of the mortgaged property becomes divested of the right to dispose of it until he has secured a release of the property from the mortgagee."

According to the Free Dictionary.Com a secured debt is defined as:
"A debt on which payment is guaranteed by an asset or a lien."
This means that a secured debt has collateral to reduce the risk associated with lending, such as a mortgage, lf the borrower defaults on payment, the bank seizes the mortgaged property, sells it and uses the proceeds realised to pay back the debt as the mortgaged property is liable to forfeiture. See: The British and French Bank Ltd v. Akande (1961) All NLR 849; Salami v. Wema Bank (Nig) Ltd (2010) 6 NWLR (pt. 1190) 341: Babatunde v. Bank of the North Limited (2011) 18 NWLR (pt. 1279) 738.