Whoever mortgages a thing for a debt owed thereby and then gifts it to a person other than the mortgagee, and the mortgagee consents to the gift to another, the gift shall be valid and the debt shall remain without security, even if the mortgagor is insolvent. If the mortgagee does not consent to the gift of the mortgaged property to another and the mortgagor is insolvent, the gift shall be void. If the mortgagor is solvent, the gift shall be valid provided that the debt is paid immediately to the mortgagee or that adequate security is provided.
Interpretation and application must be checked against the official text and current version.