MHLO: Marshall Islands Online
The Marshall Islands, whose IOC, FIFA and ISO 3166-1 three-letter code is MHL.
The Marshall Islands, officially the Republic of the Marshall Islands (RMI),
is a Micronesian island nation in the western Pacific Ocean, located north of
Nauru and Kiribati, east of the Federated States of Micronesia and south of the
U.S. territory of Wake Island, to which it lays claim.
History
History of the Marshall Islands
Although they were settled by Micronesians in the 2nd millennium BC, little is
known of the early history of the islands. Spanish explorer Alonso de Salazar
was the first European to sight the Marshall Islands in 1526, but the islands
remained virtually unvisited by Europeans for several more centuries, before the
arrival of British Captain John Marshall in 1788; the islands owe their name to
him.
A German trading company settled on the islands in 1885, and they became part of
the protectorate of German New Guinea some years later. Japan conquered the
islands in World War I, and administered them as a League of Nations mandate.
In World War II, the United States occupied the islands (1944), and they were
added to the Trust Territory of the Pacific Islands (including several more
island groups in the South Sea). Between 1946 and 1958 the United States tested
66 nuclear weapons in the Marshall Islands, including the largest nuclear test
the United States ever conducted, Castle Bravo. Nuclear claims between the
United States and the Marshall Islands are ongoing, and health effects still
linger from these tests. (see Rongelap)
In 1979 the Government of the Marshall Islands was officially established and
the country became self-governing. In 1986 the Compact of Free Association with
the United States entered into force, granting the Republic of the Marshall
Islands (RMI) its sovereignty. The Compact provided for aid and U.S. defense of
the islands in exchange for continued U.S. military use of the missile testing
range at Kwajalein Atoll. The independence was formally completed under
international law in 1990, when the UN officially ended the Trusteeship status.
On March 21, 2007, the government of the Marshall Islands declared a state of
emergency after water ran out amid a prolonged drought.
For more information, check out Marshall
Islands
MHLO may refer to:
The Marshall Islands Online, whose IOC, FIFA and ISO 3166-1 three-letter code is
MHL.
The Mennonite Historical Library Online, a collection of resources and artifacts
pertaining to Mennonites and related Anabaptist groups located at Goshen College
in Goshen, Indiana.
The three-letter Amtrak code for the station in Marshall, Texas Online.
Most Haunted Live Online, a live broadcast of the British television programme
Most Haunted, investigating purported paranormal activity.
The Mississauga Hockey League Online, a minor hockey league in Mississauga,
Ontario.
The Manitoba Hockey League Online, a professional ice hockey league that
operated until 1909.
MHLO may also refer to Mortgage Home Loan Online.
A mortgage is the pledging of a property to a lender as a security for a
mortgage loan. While a mortgage in itself is not a debt, it is evidence of a
debt. It is a transfer of an interest in land, from the owner to the mortgage
lender, on the condition that this interest will be returned to the owner of the
real estate when the terms of the mortgage have been satisfied or performed. In
other words, the mortgage is a security for the loan that the lender makes to
the borrower.
The term comes from the Old French "dead pledge," apparently meaning that the
pledge ends (dies) either when the obligation is fulfilled or the property is
taken through foreclosure.
In most jurisdictions mortgages are strongly associated with loans secured on
real estate rather than other property (such as ships) and in some cases only
land may be mortgaged. Arranging a mortgage is seen as the standard method by
which individuals and businesses can purchase residential and commercial real
estate without the need to pay the full value immediately. See mortgage loan for
residential mortgage lending, and commercial mortgage for lending against
commercial property.
The measurement of a mortgage with regards to cost to the borrower can be
measured by Annual Percentage Rate (APR) or many other formulas for true cost
such as Lender Police Effective Annual Rate (LPEAR).
In many countries it is normal for home purchases to be funded by a mortgage. In
countries where the demand for home ownership is highest, strong domestic
markets have developed, notably in Spain, the United Kingdom, the Commonwealth
of Australia and the United States.
Participants and variant terminology
Legal systems, while having some concepts in common, employ different
terminology. However, in general, a mortgage of property involves the following
parties.
Mortgage lender
Mortgagee is the legal term for the mortgage lender. The main function of the
mortgage is to provide security to the lender. Given the large sum of money
involved in financing a property, a mortgage lender will usually want security
for the loan that will provide a claim upon that security and will take
precedence over other creditors. A mortgage accomplishes this security.
The lender loans the money and registers the mortgage against the title to the
property. The borrower gives the lender the mortgage as security for the loan,
receives the funds, makes the required payments and maintains possession of the
property. The borrower has the right to have the mortgage discharged from the
title once the debt is paid. If the mortgagor fails to repay the loan according
to the conditions set forth by the lender, then the mortgagee reserves the right
to foreclose on the property.
Borrower
Mortgagor is the legal term for the borrower, who owes the obligation secured by
the mortgage, and may be multiple parties. Generally, the debtor must meet the
conditions of the underlying loan or other obligation and the conditions of the
mortgage. Otherwise, the debtor usually runs the risk of foreclosure of the
mortgage by the creditor to recover the debt. Typically the debtors will be the
individual home-owners, landlords or businesses who are purchasing their
property by way of a loan.
Most buyers of real property would have difficulty saving enough money to make
an outright purchase of real estate. The use of debt increases a buyer's ability
to buy through a combination of down payment and debt. As a result a real estate
transaction seldom occurs without borrowers relying on borrowed funds.
Borrowing for investment purposes
Aside from the absence of large amount of available money, there are several
reasons why an investor (including a buyer of real estate) might borrow funds.
Some of these include:
* To diversify investments and reduce overall risk by using only part of the
available funds for any one investment
* To invest the borrowed funds at a higher rate of interest (yield) than the
borrowing rate; for example, a sum is borrowed at an annual interest rate of 7%
and used to invest in a project that returns 10%
* To free up equity for other purposes; for example, a commercial enterprise may
prefer to use funds to purchase inventory or equipment instead of investing only
in land and buildings.
* To obtain a tax benefit. In some countries (such as Canada), mortgage interest
is not tax deductible, but loans made for investment purposes are.
Other participants
Because of the complicated legal exchange, or conveyance, of the property, one
or both of the main participants are likely to require legal representation. The
terminology varies with legal jurisdiction; see lawyer, solicitor and
conveyancer.
Because of the complex nature of many markets the debtor may approach a mortgage
broker or financial adviser to help them source an appropriate creditor,
typically by finding the most competitive loan.
The debt is, in civil law jurisdictions, referred to as hypothecation, which may
make use of the services of a hypothecary to assist in the hypothecation.
Default on Subdivided Property
When a tract of land is purchased with a mortgage and then split up and sold
off, then the "inverse order of alienation rule applies" to find out who will be
liable for the default.
Basically, when a mortgaged tract of land is split up and sold off, then upon
default, the mortgagee forecloses and proceeds against lands still owned by the
mortgagor, then liability attaches in a backward fashion, or in an 'inverse
order' as they were sold. So if A acquires a 3-acre (12,000 m2) lot by mortgage
then splits up the lot into 3 1 acre lots (A, B, and C), and sells lot B to X,
and then lot C to Y, retaining lot A for himself then, upon default, the
mortgagee will go after lot A, the mortgagor, and if that sale does not satisify
the default, then the owner of lot C will be liable, then the owner of lot B.
The idea is that the first purchaser should have more equity and subsequent
purchasers receive a diluted share.
Legal aspects
There are essentially two types of legal mortgage.
Mortgage by demise
In a mortgage by demise, the creditor becomes the owner of the mortgaged
property until the loan is repaid in full (known as "redemption"). This kind of
mortgage takes the form of a conveyance of the property to the creditor, with a
condition that the property will be returned on redemption.
This is an older form of legal mortgage and is less common than a mortgage by
legal charge. In the UK, this type of mortgage is no longer available, by virtue
of the Land Registration Act 2002.
Mortgage by legal charge
In a mortgage by legal charge or technically "a charge by deed expressed to be
by way of legal mortgage", the debtor remains the legal owner of the property,
but the creditor gains sufficient rights over it to enable them to enforce their
security, such as a right to take possession of the property or sell it.
To protect the lender, a mortgage by legal charge is usually recorded in a
public register. Since mortgage debt is often the largest debt owed by the
debtor, banks and other mortgage lenders run title searches of the real property
to make certain that there are no mortgages already registered on the debtor's
property which might have higher priority. Tax liens, in some cases, will come
ahead of mortgages. For this reason, if a borrower has delinquent property
taxes, the bank will often pay them to prevent the lienholder from foreclosing
and wiping out the mortgage.
This type of mortgage is common in the United States and, since the Law of
Property Act 1925, it has been the usual form of mortgage in England and Wales
(it is now the only form — see above).
In Scotland, the mortgage by legal charge is also known as standard security.
In Pakistan, the mortgage by legal charge is most common way used by banks to
secure the financing. It is also known as registered mortgage. After
registration of legal charge, the bank's lien is recorded in the land register
stating that the property is under mortgage and cannot be sold without obtaining
an NOC (No Objection Certificate) from the bank.
Equitable mortgage
See also: Security interest#Types of security
In an equitable mortgage the lender is secured by taking possession of all the
original title documents of the property and by borrower's signing a Memorandum
of Deposit of Title Deed (MODTD). This document is an undertaking by the
borrower that he/she has deposited the title documents with the bank with his
own wish and will, in order to secure the financing obtained from the bank.
History
At common law, a mortgage was a conveyance of land that on its face was absolute
and conveyed a fee simple estate, but which was in fact conditional, and would
be of no effect if certain conditions were met — usually, but not necessarily,
the repayment of a debt to the original landowner. Hence the word "mortgage" (a
legal term in French meaning "dead pledge"). The debt was absolute in form, and
unlike a "live pledge" was not conditionally dependent on its repayment solely
from raising and selling crops or livestock or simply giving the crops and
livestock raised on the mortgaged land. The mortgage debt remained in effect
whether or not the land could successfully produce enough income to repay the
debt. In theory, a mortgage required no further steps to be taken by the
creditor, such as acceptance of crops and livestock in repayment.
The difficulty with this arrangement was that the lender was absolute owner of
the property and could sell it or refuse to reconvey it to the borrower, who was
in a weak position. Increasingly the courts of equity began to protect the
borrower's interests, so that a borrower came to have an absolute right to
insist on reconveyance on redemption. This right of the borrower is known as the
"equity of redemption".
This arrangement, whereby the lender was in theory the absolute owner, but in
practice had few of the practical rights of ownership, was seen in many
jurisdictions as being awkwardly artificial. By statute the common law's
position was altered so that the mortgagor would retain ownership, but the
mortgagee's rights, such as foreclosure, the power of sale, and the right to
take possession, would be protected.
In the United States, those states that have reformed the nature of mortgages in
this way are known as lien states. A similar effect was achieved in England and
Wales by the Law of Property Act 1925, which abolished mortgages by the
conveyance of a fee simple.
Foreclosure and non-recourse lending
In most jurisdictions, a lender may foreclose on the mortgaged property if
certain conditions — principally, non-payment of the mortgage loan — apply.
Subject to local legal requirements, the property may then be sold. Any amounts
received from the sale (net of costs) are applied to the original debt.
In some jurisdictions, mortgage loans are non-recourse loans: if the funds
recouped from sale of the mortgaged property are insufficient to cover the
outstanding debt, the lender may not have recourse to the borrower after
foreclosure. In other jurisdictions, the borrower remains responsible for any
remaining debt, through a deficiency judgment.
Specific procedures for foreclosure and sale of the mortgaged property almost
always apply, and may be tightly regulated by the relevant government. In some
jurisdictions, foreclosure and sale can occur quite rapidly, while in others,
foreclosure may take many months or even years. In many countries, the ability
of lenders to foreclose is extremely limited, and mortgage market development
has been notably slower.
At the start of 2008, 5.6% of all mortgages in the United States were
delinquent. By the end of the first quarter that rate had risen, encompassing
6.4% of residential properties. This number did not include the 2.5% of homes in
foreclosure.
Mortgages in the United States
Types of mortgage instruments
Two types of mortgage instruments are commonly used in the United States: the
mortgage (sometimes called a mortgage deed) and the deed of trust.
The mortgage
In all but a few states, a mortgage creates a lien on the title to the mortgaged
property. Foreclosure of that lien almost always requires a judicial proceeding
declaring the debt to be due and in default and ordering a sale of the property
to pay the debt.
The deed of trust
The deed of trust is a deed by the borrower to a trustee for the purposes of
securing a debt. In most states, it also merely creates a lien on the title and
not a title transfer, regardless of its terms. It differs from a mortgage in
that, in many states, it can be foreclosed by a non-judicial sale held by the
trustee. It is also possible to foreclose them through a judicial proceeding.
Most "mortgages" in California are actually deeds of trust. The effective
difference is that the foreclosure process can be much faster for a deed of
trust than for a mortgage, on the order of 3 months rather than a year. Because
the foreclosure does not require actions by the court the transaction costs can
be quite a bit less.
Deeds of trust to secure repayments of debts should not be confused with trust
instruments that are sometimes called deeds of trust but that are used to create
trusts for other purposes, such as estate planning. Though there are superficial
similarities in the form, many states hold deeds of trust to secure repayment of
debts do not create true trust arrangements.
Mortgage lien priority
Except in those few states in the United States that adhere to the title theory
of mortgages, either a mortgage or a deed of trust will create a mortgage lien
upon the title to the real property being mortgaged. The lien is said to
"attach" to the title when the mortgage is signed by the mortgagor and delivered
to the mortgagee and the mortgagor receives the funds whose repayment the
mortgage secures. Subject to the requirements of the recording laws of the state
in which the land is located, this attachment establishes the priority of the
mortgage lien with respect to most other liens on the property's title. Liens
that have attached to the title before the mortgage lien are said to be senior
to, or prior to, the mortgage lien. Those attaching afterward are said to be
junior or subordinate. The purpose of this priority is to establish the order in
which lien holders are entitled to foreclose their liens in an attempt to
recover their debts. If there are multiple mortgage liens on the title to a
property and the loan secured by a first mortgage is paid off, the second
mortgage lien will move up in priority and become the new first mortgage lien on
the title. Documenting this new priority arrangement will require the release of
the mortgage securing the paid off loan.
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