Debt Mortgage in Iranian Legal System

The viewpoint of the most Imamieh jurists is that the Collateral must be a on real object and be handed to the mortgagee and the debt must be a fixed debt. Accordingly, they rescinded the mortgage of the debt & interest. This is the same standpoint prescribed by legislator in Iranian civil code. In the recent years, the credit transactions were increased, remarkably and the borrowing process for commercial activists were facilitated and following them, in some Act and regulations governing on bank affairs, contrary to civil Act order, the mortgage of cases not to be a real object like debt mortgage has been recognized. Irrespective of difference in standpoints among law authors in explanation and/or illustration of mortgage order, it seems that in view of the requirements of civil Act, the priority of mortgagee effects on such contracts such as debt mortgage can be recognized till it is not inconsistent with the rights of other creditors, otherwise in case of inconsistency, the priority of mortgagee in such mortgage in respect of other creditors is considered as cancelled.