A gage is a form of assurance given to fulfil a commitment or repay a debt. It can serve as collateral for a loan or a pledge to fulfil an obligation. In the past, the term “gage” was used interchangeably with “wage.” Additionally, it can be used as a verb, indicating the act of providing something as security for a loan or a promise.
Gage (gayj) is a term that can be used as a noun or a verb. As a noun, it refers to a pledge, pawn, or any other item that is given as security for the fulfilment of a task or obligation. In the past, it was also employed to signify wages in legal contexts. For instance, a gager del ley was an earlier version of a wager of law, while gager de deliverance had the same meaning as a wager of deliverance. As a verb, gage means to pawn or pledge something as security for another thing. When a landlord seizes a tenant’s belongings as a result of unpaid rent, those belongings become a gage for the payment of the overdue rent. Similarly, the sheriff often takes gages from individuals who are unwilling to surrender them. Another example of gage is when someone pawns their watch to obtain a loan from a pawnshop. In this case, the watch becomes the gage for the loan. These examples demonstrate how gage is used to describe something that is deposited as security for something else. In the scenario of the landlord and tenant, the tenant’s belongings serve as the gage for the payment of rent. In the case of the pawnshop, the watch acts as the gage for the loan.
A gage, also known as a mortgage, is a legal instrument used to secure a loan by granting the lender an interest in the borrower’s property.
While both a gage and a lien involve an interest in property, a gage specifically refers to a loan secured by the property, whereas a lien can be placed on property for various reasons, such as unpaid taxes or a court judgment.
Yes, a gage can be transferred to another party through a process called assignment. The new party becomes the new lender and assumes the rights and responsibilities of the original lender.
If you default on your gage payments, the lender has the right to initiate foreclosure proceedings. This means they can legally take possession of the property and sell it to recover the outstanding loan amount.
Yes, you can sell your property even if it has a gage on it. However, the gage will need to be paid off from the proceeds of the sale before you can transfer clear title to the buyer.
Yes, you can refinance your gage by obtaining a new loan with different terms and conditions. This can be done to take advantage of lower interest rates or to change the repayment structure of the loan.
Yes, a gage can be discharged once the loan has been fully paid off. The lender will provide a release or satisfaction of gage document, which should be recorded with the appropriate authorities to clear the property title.
Yes, a gage can be modified through a process called loan modification. This involves changing the terms of the original loan agreement, such as the interest rate, repayment period, or monthly payment amount.
Yes, it is possible to use your property as collateral for multiple gages. However, each gage will have a specific priority based on the date it was recorded. In case of foreclosure, the gages will be paid off in the order of their priority.
Yes, a gage can be removed from your property once it has been fully paid off. The lender will provide the necessary documentation to release the gage, and it should be recorded with the appropriate authorities to clear the property title.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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