ABSTRACT
The instruments which we have spoken of as “bonds” are very often secured by a mortgage of property. But one mortgage will secure a great number of bonds, the mortgagee being a trustee for all the bondholders. The Interest account here referred to is debited on the day when the interest becomes a matured obligation, and credited when that obligation is discharged. Mortgages should be numbered in chronological order, and every page or document should bear the number of the mortgage loan to which it refers. It contains but one date column, so that successive transactions, whether payments on account, or additional sums loaned, appear in their proper chronological order. The mortgage usually contains clauses which permit the mortgagee, when the mortgagor fails to make any payment for the benefit of the property, like taxes and insurance premiums, to step in and advance the money, which he has the right to recover with interest.
