Document Type

Article

Publication Date

January 1997

Volume

21

Abstract

Business firms, including miners and mining companies, seek to preventloss in various ways. When their assets are real property, a mortgage mayprovide collateral or other security for their activities. As security for a debt, a mortgage is only an effective remedy when it enables the creditor, such as a bank or other lender, to declare a default, seize the title in a foreclosure action, and then use the property to satisfy the mortgagedebt. The Latin word for security was securitas, translated as sponsor. The ideaof a mortgage lien or a security is that the property itself "sponsors" therepayment of the debt incurred in a mortgage loan.

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