(1)  A mortgagee may create a submortgage in favour of a person by executing a transfer of mortgage by way of security in an approved form.

(2)  Section 60 applies to a transfer of mortgage under this section, but nothing in that section prevents a court from giving effect to a covenant contained in a transfer of mortgage that the transferee will execute a registrable transfer of the mortgage to the transferor by way of discharge of the security.