136. Effect on mortgage of change in partnership.

136.     Effect on mortgage of change in partnership.

Where a partnership mortgages property, the mortgage prima facie only secures advances made before any subsequent alteration in the partnership, whether by the retirement or the admission of a partner or partners or by both1. If, however, the mortgage was not made by deed2, its scope may be enlarged or restricted, after an alteration in the partnership, by an oral agreement with the creditor, whether express or implied3.

Although a mortgage made by deed cannot be varied by an oral agreement, such an agreement may