1896de Book3 Chapter08 Title01

GERMAN CIVIL CODE OF 1896

• Based on the English Translation by: Wang, Chung Hui (1907). The German Civil Code, translated and annotated with historical introduction and appendices. London: Stevens and Sons. [available on Archive.org]
• Original Version in German.

Book III. Low of Things.

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Chapter VIII. Hypotheca. Land Charge. Annuity Charge.

Title I. Hypotheca.

Section 1113.

• [I] A piece of land may be charged with a right in such manner that to the person in whose favour the right is created a specified sum of money is to be paid out of the land in satisfaction of a claim belonging to him (i.e., a hypotheca).
• [II] A hypotheca may also be granted for a future or a conditional claim.

Section 1114.

• An undivided share in a piece of land may be charged with a hypotheca only if it consists of the share of a co-owner.

Section 1115.

• [I] In the registration of a hypotheca, the name of the creditor, the amount of the claim, and, if the claim bears interest, the rate of interest, and where other accessory payments are to be made, their amount must be stated in the land register; for the rest reference may be made to the authorization for registration for fuller specification of the claim.
• [II] In the case of the registration of a hypotheca for a loan for consumption made by a credit institution whose charter has been made public by the competent authority, a reference to the charter is sufficient for the specification of such accessory payments as are to be made according to the charter in addition to the interest.

Section 1116.

• [I] A certificate of hypotheca is issued for the hypotheca.
• [II] The issue of the certificate may be excluded. The exclusion may also take place subsequently. A real agreement between the creditor and the owner and registration in the land register are necessary for such exclusion; the provisions of 873, par. 2, and 876, 878 apply mutatis mutandis.
• [III] The exclusion of the issue of the certificate may be set aside; the setting aside is made in the same manner as the exclusion.

Section 1117.

• [I] In so far as the issue of a certificate of hypotheca is not excluded, the creditor does not acquire the hypotheca until the certificate is delivered to him by the owner of the land. The provisions of 929, sentence 2, and of 930, 931, apply to the delivery.
• [II] For the delivery of the certificate may be substituted an agreement that the creditor shall be entitled to have the certificate delivered to him by the land registry office.
• [III] If the ereditor is in possession of the oertificate, it is presumed that the delivery has been made.

Section 1118.

• By virtue of the hypotheca the land is liable both for the statutory interest on the claim and for the costs of notice and of legal proceedings instituted for the purpose of obtaining satisfaction out of the land.

Section 1119.

• [I] If the claim does not bear interest, or if the rate of interest is less than five per cent., the hypotheca may be enlarged without the consent of persons having rights of equal or inferior rank, to the extent of making the land liable for interest up to five per cent.
• [II] For any alteration of the time and place of payment, the consent of persons having such rights is likewise not necessary.

Section 1120.

• The hypotheca extends to all products severed from the land and to other component parts, in so far as they have not passed upon their severance into the ownership of some person other than the owner or proprietary possessor of the land as provided for in 954 to 957; and to all accessories of the land, with the exception of the accessories which have not passed into the ownership of the owner of the land.

Section 1121.

• [I] Products and other component parts of the land and its accessories are discharged from the lability, if they are alienated and removed from the land before they have been distrained upon in favour of the creditor.
• [II] If the alienation takes place before the removal, the acquirer may not, as against the creditor, set up that he was in good faith in respect of the hypotheca. If the acquirer removes the thing from the land, a distraint made before the removal is effective against him only if he is in bad faith in respect of the distraint at the time of the removal.

Section 1122.

• [I] If the products or component parts have been severed from the land within the limits of proper husbandry, their liability is extinguished even without alienation, if they are removed from the land before being distrained upon, unless the removal is made for a temporary purpose.
• [II] Accessories are discharged from the liability without alienation, if before the distraint the accessory character is destroyed within the limits of proper husbandry.

Section 1123.

• [I] If the land is let under an ordinary or usufructuary lease, the hypotheca extends to the claim for the rent.
• [II] Where the claim is matured, it is discharged from the liability upon the lapse of one year since the date of maturity, unless within such period the distraint has been made in favour of the hypotheca creditor. If the rent is payable in advance, such discharge does not extend to any rent for a later time than the current and following calendar quarter at the time of the distraint.

Section 1124.

• [I] If the rent is collected before it has been distrained upon in favour of the hypotheca creditor, or if any other disposition has been made of it before the distraint, the disposition is effective as against the hypotheca creditor. If the disposition consists of the transfer of the claim to a third party, the liability of the claim is extinguished; if a third party acquires a right in the claim, it takes priority in rank to the hypotheca.
• [II] The disposition is ineffective as against the hypotheca creditor in so far as it relates to any rent for a later time than the current and following calendar quarter at the time of the distraint.
• [III] It is equivalent to the transfer of the claim to a third party, if the land is alienated without the claim.

Section 1125.

• Where the collection of the rent is invalid as against the hypotheca creditor, the lessee may not set off against the hypotheca creditor a claim belonging to him against the lessor.

Section 1126.

• If a right to periodical acts of performance is annexed to the ownership of the land, the hypotheca extends to the claims for such acts of performance. The provisions of 1123, par. 2, sentence 1, 1124, pars. 1, 3, and 1125, apply mutatis mutandis. A disposition, made before the distraint, of a claim to an act of performance which does not become due till three months after the distraint, is ineffective as against the hypotheca creditor.

Section 1127.

• [I] If objects subject to the hypotheca are insured for the owner or proprietary possessor of the land, the hypotheca extends to the claim against the insurer.
• [II] The liability of the claim against the insurer is extinguished if the insured object is restored, or a substitute for it is provided.

Section 1128.

• [I] If a building is insured, the insurer may not, as against the hypotheca creditor, pay the insurance money to the insured until he or the insured has given notice to the hypotheca creditor of the occurrence of the damage, and one month has elapsed since receipt of the notice. The hypotheca creditor may, before the expiration of such period, prohibit the insurer from making any payment. The notice may be dispensed with if it is impracticable; in such a case the month is reckoned from the date at which the insurance money becomes due.
• [II] For the rest the provisions applicable to a pledged claim apply; the insurer, however, may not set up that he was unaware of a hypotheca discoverable from the land register.

Section 1129.

• If an object other than a building is insured, the liability of the claim against the insurer is determined according to the provisions of 1123, par. 2, sentence 1, and 1124, pars. 1 and 3.

Section 1130.

• If according to the conditions of the insurance the insurer is bound only to pay the insurance money for the restoration of the insured object, a payment to the insured which satisfies the conditions is effective as against the hypotheca creditor.

Section 1131.

• If a piece of land is ascribed to another piece in the land register as provided for in 890, par. 2, all hypothecas existing on such other piece of land extend to the land ascribed. Rights with which the ascribed land is charged have priority in rank to such hypothecas.

Section 1132.

• [I] If a claim is secured by a hypotheca on several pieces of land (i.e., a collective hypotheca), each piece of land is liable for the whole claim. The creditor may seek satisfaction at his discretion out of each of the pieces of land, in whole or in part.
• [II] The creditor is entitled to distribute the amount of the claim among the several pieces of land in such manner that each piece is liable only for the amount assigned to it. The provisions of 875, 876, 878 apply mutatis mutandis to the distribution.

Section 1133.

• If, in consequence of deterioration of the land, the security of the hypotheca is endangered, the creditor may allot to the owner a fixed reasonable period for the removal of the danger. After the expiration of the period the creditor is entitled to seek satisfaction forthwith out of the land, unless the danger has been removed by the improvement of the land, or by the grant of an additional hypotheca. If the claim does not bear interest and is not yet matured, the creditor is only entitled to a sum which, with addition of the 'statutory interest from the time of payment till maturity, would equal the amount of the claim.

Section 1134.

• [I] If the owner or a third party deals with the land in such a manner that deterioration of the land endangering the security of the hypotheca is to be apprehended, the creditor may apply for an injunction.
• [II] If the act proceeds from the owner, the Court shall, upon the application of the creditor, order the necessary measures for the prevention of the danger. The same rule applies if the deterioration is to be apprehended by reason of the fact that the owner omits the necessary precautions against any interference on the part of third parties, or against other injuries.

Section 1135.

• It is equivalent to deterioration of the land within the meaning of 1133, 1134, if accessories to which the hypotheca extends have deteriorated or are removed from the land contrary to the rules of proper husbandry.

Section 1136.

• An agreement is void whereby the owner binds himself to the creditor not to alienate the land nor to subject it to further rights.

Section 1137.

• [I] The owner may avail himself, as against the hypotheca, of all defences which the personal debtor has against the claim, and also of all defences which a surety has under 770. If the personal debtor dies, the owner may not set up for himself that the heir has only a limited liability for the debt.
• [II] If the owner is not the personal debtor, he does not lose a defence merely because the latter has waived it.

Section 1138.

• The provisions of 891 to 899 apply to the hypotheca even in respect of the claim and the defences which the owner has under 1137.

Section 1139.

• If, in granting a hypotheca for a loan for consumption, the issue of a certificate of hypotheca has been excluded, an application made by the owner to the land registry office is sufficient for the registration of an objection to the effect that the loan has not been made, provided such application has been presented before the expiration of one month after the registration of the hypotheca. If the objection is registered within the month the registration has the same effect as if the objection had been registered simultaneously with the hypotheca.

Section 1140.

• Where the incorrectness of the land register appears from a certificate of hypotheca or a memorandum upon the certificate, the provisions of 892, 893 do not apply. An objection to the correctness of the land register which appears from the certificate or a memorandum upon the certificate is equivalent to an objection entered in the land register.

Section 1141.

• [I] If the maturity of the claim depends upon notice, the notice is effective in respect of the hypotheca only if it is communicated by the creditor to the owner, or vice versa. In favour of the creditor, the person who is registered in the land register as owner is deemed to be the owner.
• [II] If the owner is not domiciled in the Empire, or if the conditions of 132, par. 2, exist, the District Court in whose district the land is situated shall, upon the application of the creditor, appoint a representative of the owner to whom the creditor's notice can be given.

Section 1142.

• [I] The owner is entitled to satisfy the creditor, if the claim has become due in respect of him, or if the personal debtor is entitled to make payment.
• [II] The satisfaction may also be made by lodgment or by set-off.

Section 1143.

• [I] If the owner is not the personal debtor, and if he satisfies the creditor, the claim is transferred to him. The provisions of 774, par. 1, applicable to a surety, apply mutatis mutandis.
• [II] If the claim is secured by a collective hypotheca, the provisions of 1173 apply to such hypotheca.

Section 1144.

• The owner, on satisfying the creditor, may require the delivery of the certificate of hypotheca and of all other documents which are necessary for the rectification of the land register or for the cancellation of the hypotheca.

Section 1145.

• [I] If the owner satisfies the creditor in part he may not require the delivery of the certificate of hypotheca. The creditor is bound to make a memorandum of the partial satisfaction on the certificate, and to produce the certificate at the land registry office for the purpose of rectification of the land register, or for cancellation, or to produce it to the competent authority or a competent notary, for the purpose of drawing up a part certificate for the owner.
• [II] The provision of par. 1, sentence 2, applies to interest and other accessory payments only if they become due later than the calendar quarter in which the creditor is satisfied or the following quarter. The provision does not apply to costs for which the land is liable as provided for in 1118.

Section 1146.

• If the conditions arise with reference to the owner under which a debtor is in default, interest for default is payable to the creditor out of the land.

Section 1147.

• The satisfaction of the creditor out of the land and the objects to which the hypotheca extends, is effected by means of compulsory execution.

Section 1148.

• In the prosecution of the right arising from the hypotheca, the person who is registered in the land register as owner is deemed to be the owner in favour of the creditor. The right of an unregistered owner to set up the defences which he has against the hypotheca remains unaffected.

Section 1149.

• The owner may not, so long as the claim has not become due as against him, confer upon the creditor the right to require the transfer of the ownership of the land for the purpose of satisfaction or to alienate the land in any manner other than by compulsory execution.

Section 1150.

• If the creditor requires satisfaction out of the land, the provisions of 268, 1144, 1145 apply mutatis mutandis.

Section 1151.

• If the claim is divided, the consent of the owner is not necessary for the alteration of the relative rank of the partial hypothecas among themselves.

Section 1152.

• If the claim is divided, and if the issue of a certificate of hypotheca is not excluded, a part certificate of hypotheca may be issued for each part; the consent of the owner of the land is not necessary. The part certificate takes the place, in respect of the part to which it relates, of the former certificate.

Section 1153.

• [I] Upon the transfer of the claimthe hypotheca passes to the transferee.
• [II] The claim may not be transferred without the hypotheca, and vice versa.

Section 1154.

• [I] For the assignment of the claim the issue of a written declaration of assignment and delivery of the certificate of hypotheca are necessary; the provisions of 1117 apply. Upon the application of the assignee, the assignor shall cause the declaration of assignment to be publicly certified at his own expense.
• [II] For the written declaration of assignment may be substituted the registration of the assignment in the land register.
• [III] If the issue of the certificate of hypotheca is excluded, the provisions of 873, 878 apply mutatis mutandis to the assignment of the claim.

Section 1155.

• If any right, which a possessor of a certificate of hypotheca has in the capacity of creditor, appears from a series of publicly certified declarations of assignment leading back to a registered creditor, the provisions of 891 to 899 apply in the same manner as if the possessor of the certificate were registered in the land register as creditor. A judicial decree of assignment and a publicly certified acknowledgment of the transfer of the claim hy operation of law are equivalent to a publicly certified declaration of assignment.

Section 1156.

• The provisions of 406 to 408 applicable to the transfer of a claim do not apply to the legal relation between the owner and _ the transferee in respect of the hypotheca. The transferee must, however, permit a notice given by the owner to the transferor to be valid as against himself, unless at the time of the notice the transfer was known to the owner or was registered in the land register.

Section 1157.

• A defence which the owner has against the hypotheca by reason of a legal relation existing between him and the transferor may also be set up against the transferee. The provisions of 892, 894 to 899, 1140 apply also to such defence.

Section 1158.

• Where the claim is for interest or other accessory payments, which become due not later than the calendar quarter in which the owner has knowledge of the transfer, or the following quarter, the provisions of 406 to 408 apply to the legal relation between the owner and the transferee; the transferee cannot set up the provisions of 892 against the defences which the owner has under 404, 406 to 408, 1157.

Section 1159.

• [I] Where the claim is for arrears of interest or other accessory payments, the transfer as well as the legal relation between the owner and the transferee are determined by the general provisions applicable to the transfer of claims. The same rule applies to the claim for reimbursement of costs for which the land is liable as provided for in 1118.
• [II] The provisions of 892 do not apply to the claims specified i in par. 1.

Section 1160.

• [I] The enforcement of the hypotheca may be opposed, where the issue of a certificate of hypotheca is not excluded, if the creditor does not produce the certificate; if the creditor is not registered in the land register, the documents specified in 1155 shall also be produced.
• [II] A notice or warning given to the owner is ineffective, if the creditor does not produce the necessary documents as provided for in par. 1, and the owner without delay rejects the notice or warning for this reason.
• [III] These provisions do not apply to the claims specified in 1159.

Section 1161.

• If the owner is the personal debtor, the provisions of 1160 apply also to the enforcement of the claim.

Section 1162.

• If a certificate of hypotheca is lost or destroyed, it may be declared void by public summons.

Section 1163.

• [I] If the claim for which the hypotheca is granted is not created, the hypotheca belongs to the owner. If the claim becomes extinct, the owner acquires the hypotheca.
• [II] A hypotheca for which the issue of a certificate is not excluded belongs to the owner until the delivery of the certificate to the creditor.

Section 1164.

• [I] If the personal debtor satisfies the creditor, the hypotheca passes to him in so far as he can demand reimbursement from the owner or from a predecessor in title of the owner. If only partial reimbursement is to be made to the debtor, the owner may not enforce the hypotheca, where it has passed to him, to the injury of the hypotheca of the debtor.
• [II] It is equivalent to the satisfaction of the creditor if claim and debt merge in the same person.

Section 1165.

• If the creditor relinquishes the hypotheca, or if he cancels it under 1183, or if he grants priority to another right, the personal debtor is discharged from his liability in so far as he would have been able to obtain reimbursement under 1164 out of the hypotheca if the creditor had not done any one of such acts.

Section 1166.

• If the personal debtor is entitled to require reimbursement from the owner, provided he satisfies the creditor, and if the creditor proceeds to the compulsory auction of the land without giving him notice without delay, he may refuse to satisfy the creditor on account of a deficiency from the compulsory auction in so far as he suffers damage in consequence of the omission of the notification. The notification may be omitted if it is impracticable.

Section 1167.

• If the personal debtor, where he satisfies the creditor, acquires the hypotheca, or if he has in case of satisfaction any other legal interest in the rectification of the land register, the rights specified in 1144, 1145, belong to him.

Section 1168.

• [I] If the creditor relinquishes the hypotheca the owner acquires it.
• [II] The relinquishment shall be communicated to the land registry office or to the owner, and requires entry in the land register. The provisions of 875, par. 2, and 876, 878 apply mutatis mutandis.
• [III] If the creditor relinquishes the hypotheca in respect of a part of the claim, the rights specified in 1145 belong to the owner.

Section 1169.

• If the owner has a defence whereby the enforcement of the hypotheca is permanently excluded, he may require the creditor to relinquish the hypotheca.

Section 1170.

• [I] Where the creditor is unknown he may be excluded from his rights by means of public summons, if ten years have elapsed since the last entry in the land register relating to the hypotheca, and the right of the creditor has not been recognised within such period by the owner in a manner appropriate according to 208 for the interruption of prescription. If a date has been fixed for the payment of the claim, the period does not begin to run till the expiration of the day of payment.
• [II] Upon the issue of the decree of exclusion the owner acquires the hypotheca. The certificate of hypotheca issued to the creditor becomes void.

Section 1171.

• [I] An unknown creditor may be excluded from his rights by means of public summons, even if the owner is entitled to satisfy the creditor or to give notice, and lodges the amount of the elaim for the benefit of the creditor with a waiver of the right of withdrawal. The lodgment of interest is necessary only if the rate of interest is entered in the land register; interest for an earlier time than the fourth calendar year prior to the issue of the decree of exclusion is not to be lodged.
• [II] Upon the issue of the decree of exclusion the creditor is deemed to be satisfied, in so far as satisfaction has not already been made under the provisions relating to lodgment. The certificate of hypotheca issued to the creditor becomes void.
• [III] The right of the creditor to the amount lodged is extinguished upon the lapse of thirty years after the issue of the decree of exclusion, unless the creditor reports himself at the lodgment office within such period; the person making the lodgment is entitled to withdraw the amount lodged, even if he has waived the right of withdrawal.

Section 1172.

• [I] A collective hypotheca belongs, in the cases provided for by 1163, to the owners of the charged lands in common.
• [II] Each owner may, unless it has been otherwise agreed upon, require that the hypotheca on his land be limited according to 1132, par. 2, to the amount which corresponds to the proportion of the value of his land to the aggregate value of the pieces of land, and be allotted to him with such limitation. The value is reckoned with a deduction of the amounts secured by rights which have priority to the collective hypotheca.

Section 1173.

• [I] If the owner of one of the pieces of land subject to a collective hypotheca satisfies the creditor, he acquires the hypotheca on his own land; the hypotheca on the other pieces of land is extinguished. It is equivalent to the satisfaction of the creditor by the owner if the creditor's right is transferred to the owner, or if claim and debt merge in the owner.
• [II] If the owner who satisfies the creditor may require reimbursement from the owner of one of the other pieces of land or from a predecessor in title of that owner, the hypotheca on the land of that owner also passes to him to the extent of the claim for reimbursement; it remains with the hypotheca on his own land as a collective hypotheca.

Section 1174.

• [I] If a personal debtor satisfies a creditor who has a collective hypotheca, or if, in the case of a collective hypotheca, the claim and the debt merge in one person, and if the debtor can require reimbursement only from the owner of one of the pieces of land or from a predecessor in title of the owner, the hypotheca on such piece of land passes to him; the hypotheca on the other lands is extinguished.
• [II] If only partial reimbursement is to be made to the debtor, and if for this reason the hypotheca passes to him only in respect of a part of the amount, the owner is bound to deduct such- part from the share in the residue of the collective hypotheca which accrues to him as provided for in 1172.

Section 1175.

• [I] If the creditor relinquishes the collective hypotheca, it accrues to the owners of the charged lands in common; the provisions of 1172, par. 2, apply. If the creditor relinquishes the hypotheca on one of the pieces of land, the hypotheca on that, piece is extinguished.
• [II] The same rule applies if the creditor is excluded from his right as provided for in 1170.

Section 1176.

• If the conditions of 1163,.1164, 1168, 1172 to 1175 exist only in respect of a part of the hypotheca, the hypotheca accruing to the owner, or one of the owners, or to the personal debtor, by virtue of these provisions, may not be enforced to the injury of the hypotheca remaining with the creditor.

Section 1177.

• [I] If the hypotheca and the ownership merge in one person while the claim belongs to a person other than the owner, the hypotheca is then converted into a land charge. With respect to the question of interest, the rate of interest, the time of payment, notice, and place of payment, the provisions made in respect of the claim are applicable.
• [II] If the claim belongs also to the owner, his rights arising from the hypotheca, so long as the merger is operative, are determined according to the provisions applicable to a land charge belonging to the owner.

Section 1178.

• [I] The hypotheca in respect of arrears of interest and other accessory payments, and in respect of costs which are to be paid to the creditor, is extinguished if the hypotheca and the ownership merge in one person. The hypotheca is not extinguished where a right to the claim for such a payment belongs to a third party.
• [II] For the relinquishment of the hypotheca in respect of the payments specified in par. 1, a declaration to that effect made by the creditor to the owner is sufficient. So long as a right to the claim for such a payment belongs to a third party, the consent of such third party is necessary. The consent shall be declared to the person in whose favour it is given; it is irrevocable.

Section 1179.

• Where the owner binds himself to another person to cause the hypotheca to be extinguished if the hypotheca and the ownership merge in one person, a caution may be entered in the land register for securing the claim for extinction.

Section 1180.

• [I] For a claim secured by a hypotheca another claim may be substituted. A real agreement between the creditor and the owner and an entry in the land register are necessary for such substitution; the provisions of 873, par. 2, and 876, 878 apply mutatis mutandis.
• [II] If the claim which is to take the place of the former claim does not belong to the former hypotheca creditor, his consent is necessary; the consent shall be communicated to the land registry office or to the person in whose favour it is given. The provisions of 875, par. 2, and 876 apply mutatis mutandis.

Section 1181.

• [I] If the creditor is satisfied out of the land, the hypotheca is extinguished.
• [II] If the satisfaction is effected out of one of the pieces of land charged with a collective hypotheca, the other pieces of land are also discharged.
• [III] Satisfaction out of the objects to which the hypotheca extends is equivalent to satisfaction out of the land.

Section 1182.

• If, in the case of a collective hypotheca, the owner of the land out of which the creditor is satisfied can require reimbursement from the owner of one of the other pieces of land or from a predecessor in title of that owner, the hypotheca on the land of that owner passes to him. The hypotheca may not, however, if the creditor is only partially satisfied, be enforced to the injury of the hypotheca remaining with the creditor and, if the land is charged with a right of equal or subsequent rank, not to the injury of that right.

Section 1183.

• For the release of a hypotheca by juristic act, the consent of the owner is necessary. The consent shall be communicated to the land registry office or to the creditor; it is irrevocable.

Section 1184.

• [I] A hypotheca may be granted in such manner that the right of the creditor arising from the hypotheca is determined only according to the claim, and the creditor cannot appeal to any registration for evidence of the claim (i.e., a cautionary hypotheca).
• [II] The hypotheca must be designated in the land register as a cautionary hypotheca.

Section 1185.

• [I] In the case of a cautionary hypotheca the issue of a certificate of hypotheca is excluded.
• [II] The provisions of 1138, 1139, 1141, 1156 do not apply.

Section 1186.

• A cautionary hypotheca may be converted into an ordinary hypotheca, and vice versa. The consent of persons having rights of equal or subsequent rank is not necessary.

Section 1187.

• In respect of a claim arising from an obligation to bearer, a bill of exchange, or any other instrument that can be transferred by indorsement, only a cautionary hypotheca can be granted. The hypotheca is deemed to be a cautionary hypotheca even if it is not designated as such in the land register. The provision of 1154, par. 3, does not apply.

Section 1188.

• [I] A declaration communicated by the owner to the land registry office that he grants the hypotheca and registration in the land register are sufficient for the grant of a hypotheca in respect of a claim arising from an obligation to bearer; the provision of 878 applies.
• [II] The exclusion of a creditor from his right, as provided for in 1170, is permissible only if the period for presentation specified in 801 has elapsed. If the obligation is presented or the claim upon the instrument is enforced in Court within the period, the exclusion may not be effected until after the lapse of the period of prescription.

Section 1189.

• [I] In the case of a hypotheca of the kind specified in 1187 a representative of the creditor for the time being may be appointed with the authority to make certain dispositions affecting the hypotheca, which shall be valid both in favour of and as against every subsequent creditor, and to represent the creditor in the enforcement of the hypotheca. For the appointment of the representative, registration in the land register is necessary.
• [II] If the owner is entitled to require the creditor to make a disposition which the representative is authorised to make, he may require the representative to make such a disposition.

Section 1190.

• [I] A hypotheca may be granted in such manner that only the maximum amount for which the land is to be liable is specified, the determination of the claim being in other respects reserved. The maximum amount must be entered in the land register.
• [II] If the claim bears interest, the interest is included in the maximum amount.
• [III] The hypotheca is deemed to be a cautionary hypotheca, even if it is not designated as such in the land register.
• [IV] The claim may be transferred under the general provisions applicable to the transfer of claims. If it is transferred under those provisions, the transfer of the hypotheca is excluded.