695. Release of security under equitable mortgage.

695.     Release of security under equitable mortgage.

An equitable mortgage does not create any legal estate or interest in favour of the mortgagee and no formal deed of release is required1. A release of the whole of the security may be effected by the cancellation of the mortgage or a simple receipt2. The release of part of equitably mortgaged property is generally effected by a written statement or letter from the mortgagee that he has no charge on the particular property3.