The first operative part of a mortgage is usually the covenant by the mortgagor to pay the principal and interest on a day named1. If there is no covenant and no accompanying bond, there is still an implied promise to pay2 in the case of a mortgage created by the borrower. In the case of other third party securities whether or not a covenant to pay is implied depends on the construction of the agreement3. As every loan transaction implies a right to be repaid, if a person lending money is never to have his principal back, there must
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