State Codes and Statutes

State Codes and Statutes

Statutes > Delaware > Title25 > C025



Mortgages and Other Liens


§ 2501. Authorization and effect.

(a) It shall be lawful for any lessee of any lands or premises situate in this State for a term of 10 years or more to mortgage
that lessee's lease or term in the demised premises with all buildings, fixtures and machinery thereon belonging to the lessee
and appurtenant to that lessee's interests with the same effect as to lien, notice, evidence and priority of payment as to
the lessee's interest and title as in the case of the mortgaging of a freehold interest and title. The mortgage of such term
of the lessee shall be in like manner acknowledged, recorded in the proper county and indexed in the same manner as required
by law for the acknowledging, recording and indexing of mortgages covering freehold interests and titles. Such mortgage shall
in no manner or in any wise interfere with the landlord's rights, priority or remedy for rent. Writs of scire facias for the
enforcement of the lien of such mortgages may be sued out as in other cases. In all cases of mortgages upon leasehold estates,
the mortgagees shall have the same remedies for collection thereof which mortgagees of fee simple interests in real estate
have under the laws of this State for the collection of such mortgages.

(b) For purposes of this section, a lease or term of years shall be considered to be for a term of 10 years or more, if at
the time of entering into the lease or term of years that is to be mortgaged, the stated term of the lease or term of years
shall have been for 10 years or more (not including any renewals or extensions that may be provided for under that lease or
term of years), and notwithstanding that the unexpired term of the lease or the term of years at the time of mortgaging the
same is less than 10 years.

39 Del. Laws, c. 36; 40 Del. Laws, c. 216; Code 1935, § 3386; 25 Del. C. 1953, § 2501; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 422, § 1.;