Section 8: Transfer and extinction of mortgages

The mortgage is transferred ipso jure with the secured claim. The mortgagee may subrogate another creditor in the mortgage and retain his claim. He may also, by an assignment of anteriority, assign his registration rank to a creditor of later rank whose place he takes.

Mortgages are extinguished in particular: 1° By the extinction of the principal obligation subject to the case provided for in Article 2422; 2° By the creditor’s renunciation of the mortgage subject to the same reservation; 3° By purge; 4° By the termination permitted in the last paragraph of Article 2417 and to the extent provided for by that text.