law
This query is : Resolved
19 December 2009
can anyone clarify....
Charge/Mortgage/hypothecation/pledge
i.e the basic difference between each of them...???
Charge/Mortgage/hypothecation/pledge
i.e the basic difference between each of them...???
20 December 2009
Charge includes mortgage, hypothecation and pledge. It means certain types of loan has been taken on the security of the asset.
In Mortgage; title deeds remains with the lender but possession remains with the BORROWER.
In Pledge; title deeds and possession remains with the LENDER.
Hypothecation is a specific type of charge. Here borrower is entitled to sale the asset. It means possession is also with him. But in case of default in the loan repayment and interest thereof; the lender can take possession and title of the assets.
In Mortgage; title deeds remains with the lender but possession remains with the BORROWER.
In Pledge; title deeds and possession remains with the LENDER.
Hypothecation is a specific type of charge. Here borrower is entitled to sale the asset. It means possession is also with him. But in case of default in the loan repayment and interest thereof; the lender can take possession and title of the assets.
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