A mortgage has the following effects:
(1) Upon failure of the obligor to perform the obligation secured by the mortgage, the mortgagee may cause the mortgaged property to be seized and sold in the manner provided by law and have the proceeds applied toward the satisfaction of the obligation.
(2) The mortgaged property may not be transferred or encumbered to the prejudice of the mortgage.
(3) The mortgagee is preferred to the unsecured creditors of the mortgagor and to others whose rights become effective after the mortgage becomes effective as to them.
Acts 1992, No. 1132, §2, eff. Jan. 1, 1993.