submortgage

English

Etymology

sub- +‎ mortgage

Noun

submortgage (countable and uncountable, plural submortgages)

1. (law) A secured loan whereby a mortgagee uses his interest in a mortgage as collateral on a loan with a third party, in effect transferring or assigning the mortgage thereto.
   • 2016, David Osborne, Graeme Bowtle & Charles Buss, chapter 3, in The Law of Ship Mortgages‎^[1], page 61:

     The amount secured by the submortgage can never exceed the amount secured by the original mortgage.

Related terms

• submortgagee