A mortgage of mortgage has virtually the same effect as a transfer of mortgage. Accordingly, a discharge of a mortgage that has been mortgaged must be signed by the mortgagee in the mortgage of mortgage and not the original mortgagee.
Extra care must be taken where a mortgage has been mortgaged. The mortgagee in the mortgage of mortgage actually has the option of discharging the mortgage of mortgage or the original mortgage. If the mortgage of mortgage is discharged, then the original mortgage survives and the rights vest back in the original mortgagee. If the original mortgage is the instrument specified in the discharge, then the mortgage and the mortgage of mortgage will both be removed.