On Reversionary Life Interests as Securities for Loans

Extract

Of all the securities proposed to insurance companies, reversionary life interests are the most troublesome to deal with in the ordinary way of mortgage; and the objections to so dealing with them have been considered by many actuaries so serious, that they have laid down the rule that the only safe way of making an advance on the security of a reversionary life interest is by way of reversionary charge. The transaction, they think, should be in the nature of a sale rather than a mortgage, a portion of the reversionary life interest being sold in consideration of the present advance.