Ar cle 397 Where a building is mortgaged, the right to use the lot of land in the area occupied by the building for construc on purposes shall be mortgaged concomitantly. Where a right to use a lot of land for construc on purposes is mortgaged, any building on the lot of land shall be mortgaged concomitantly. Where a mortgagor fails to concomitantly mortgage the property as provided in the preceding paragraph, the unmortgaged property in ques on shall be deemed to be concomitantly mortgaged. Ar cle 398 A right to use a lot of land for construc on purposes of a township or village enterprise may not be mortgaged separately. Where a factory premise or any other building of a township or village enterprise is mortgaged, the right to use the lot of land in the area occupied by the building for construc on purposes shall be concomitantly mortgaged. Ar cle 399 The following property may not be mortgaged: (1) land ownership; (2) the right to use the land owned by a collec ve, such as house sites, land and hills retained for household use, unless it may be mortgaged as provided by law; (3) educa onal facili es, medical and health facili es, and other public welfare facili es of non-pro t legal persons established for public welfare purposes, such as schools, kindergartens, and medical ins tu ons; (4) property of which the ownership or right to the use is unclear or disputed; (5) property that has been seized, detained, or placed under custody in accordance with law; and (6) other property that may not be mortgaged as provided by laws or administra ve regula ons. Ar cle 400 To create a mortgage, the par es shall enter into a mortgage contract in wri ng. A mortgage contract generally contains the following terms: (1) the type and amount of the secured claim; (2) the term during which the debtor shall perform obliga ons; (3) such par culars as the name and quan ty of the mortgaged property; and (4) the scope of the security interest covered. Ar cle 401 Where, prior to the due date of performance of an obliga on, the mortgagee reaches an agreement with the mortgagor under which the mortgaged property belongs to the creditor in the event that the debtor fails to perform the obliga on due, the mortgagee, regardless, may only have priority to be paid from the mortgaged property in accordance with law. Ar cle 402 To create a mortgage on the property as speci ed in Subparagraphs (1) through (3) of the rst paragraph of Ar cle 395, or on the building under construc on as speci ed in Subparagraph (5) of the rst paragraph of this Code, registra on shall be made for the mortgage. The mortgage shall be created upon registra on. Ar cle 403 A mortgage on movable property shall be created at the me when the mortgage contract enters into e ect; without registra on, such a mortgage may not be asserted against a bona de third person. Ar cle 404 A mortgage on movable property may not be asserted against a buyer who has paid a reasonable purchase price and acquired the mortgaged property in the ordinary course of business. Ar cle 405 Where a mortgaged property has been let to and possessed by another person prior to crea on of the mortgage, the lease rela onship shall not be a ected by the mortgage. Ar cle 406 A mortgagor may transfer the mortgaged property to another person during the term of the mortgage unless otherwise agreed by the par es. The transfer of the mortgaged property shall not a ect the mortgage. A mortgagor who transfers the mortgaged property to another person shall no fy the mortgagee in a mely manner. The mortgagee may request the mortgagor to apply the proceeds of the transfer to pay o the ti fi ti fi ff ti fi ff ti ti ti ti fi ti ti ti fi ti ti ti ti fi ff ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ff ti ti ti ti ti ti ti ti ti ti 44