Realisation of a mortgage on a mortgage claim (subintabulate – a mortgage on a claim already secured with another mortgage)

Abstract

The creation of a subintabulate guarantees the holder a greater scope of rights than in the case of a mortgage encumbering an object other than the mortgage claim. Subintabulate is an effective security because there are several ways to realize it. The primary way to realize a subintabulate is to monetize its object during court enforcement proceedings. This is the only example of a mortgage where enforcement proceedings are conducted on the basis of regulations other than those that govern the execution of a mortgage on real estate. Subintabulary is effected by cashing in the mortgage claim which, from the perspective of an enforcing creditor, has more advantages than cashing in real estate. The legislator also gives the sub-intabulatory creditor of a mortgage on a mortgage claim special rights, which are subject to actualization upon fulfillment of the conditions specified in the act. Consequently, the sub-intabulated creditor has three ways of exercising the sub-intabulate.