Thus, in case of doubt, a contract purporting to be a sale with right of repurchase shall be construed as an equitable mortgage.
A contract of sale with right of repurchase shall be presumed to be an equitable mortgage when: (a) the price of a sale with right of repurchase is unusually inadequate; (b) the seller remains in possession as lessee or otherwise; (c) upon or after the expiration of the right to repurchase, another instrument extending the period of redemption or granting a new period is executed; (d) the buyer retains for himself a part of the purchase price; (e) the seller binds himself to pay the taxes on the thing sold; or (f) in any other case, it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation.
Fremont sued Thompson seeking an equitable mortgage
on the residence or, in the alternative, damages for unjust enrichment.
The presence of any of the circumstances set forth therein suffices for a contract to be deemed an equitable mortgage
. No concurrence or an overwhelming number is needed (Art.
BANKING AND CREDIT NEWS-March 4, 2011--S&P discontinues Equitable Mortgages
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