224. Equitable mortgage by deposit and lien mutually exclusive.

224.     Equitable mortgage by deposit and lien mutually exclusive.

Where an equitable mortgage or charge was created by deposit of title deeds1, there was an implied contract that the mortgagee or chargee might retain the deeds until he was paid2. When the mortgage or charge was avoided, for example for non-registration as a land charge3, then everything ancillary to it was avoided, including the right of retention4.