This Act makes provision with respect to the creation of mortgages and consequences of such mortgages. The purpose of the Act is to establish a system of mortgage law in Yap State which will induce lenders to make secured commercial and residential loans, while at the same time ensuring that borrowers who execute mortgages of property in Yap State understand nature and consequences of the mortgage, and that the parties to the mortgage are protected against unfair practices. A non-citizen of the Federated States of Micronesia may be a mortgagee under the provisions of this Act but shall not be entitled at any time to hold fee simple title to property in Yap State. Under the provisions of this Act, a mortgage creates a lien on the land, but does not pass title to the mortgagee.
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This is the profile for the Government of Micronesia