Tell me the diff of following
This query is : Resolved
10 August 2011
tell me the diff between hypothication , modgage and pleage
10 August 2011
HYPOTHECATION:
Mortgage of movable property is called hypothecation. The securities remain in possession of the borrower and are only equitably charged to the banker under documents executed by him. The particulars of the securities and their quantities are declared by the borrower through periodical statements on the basis of which the drawings are regulated by the banker.
MORTGAGE:
A mortgage is the transfer of an interest in specific immovable property as a security for repayment of a debt. The banker is usually concerned with English mortgage or equitable mortgage or registered or legal mortgage for the purpose of making advances where the ownership of the property is transferred to he mortgagee by registration of the mortgage deed.
Normally, the possession of the property remains with the mortgagor who has a right to redeem the property on payment of the outstanding advances.
PLEDGE:
Pledge means bailment or delivery of goods or documents of title to goods by the borrower to the creditor with the intention of creating a charge thereon as security for debt. The ownership remains with the pledger subject to certain interests of the pledgee in the security concerned. In a pledge the debtor-customer delivers the possession of the securities to the banker and the banker holds the possession of securities until the debt is discharged.
This is the essence of a pledge which is a bailment of movable property by one person to another to secure repayment of the securities is held by the banker (pledgee) the ownership thereof lies with the debtor (pledger) who is entitled to return of the same upon repayment of the debt including interest and other expenses. If the debt remains unpaid the banker has a right of sale of the securities and can exercise this power with or without recourse to the court after giving a proper notice to the pledger.
Generally, goods, produces and other merchandises of bulky nature are stored in the borrower’s godown. Other securities namely stock exchange securities are stored in the bank’s own strong-room. Wherever the pledged securities are stored, the banker has to keep them under his lock and key and to maintain watch and ward. Also, the securities are required to be adequately covered by insurance against fire and R.S.D. risks.
All pledges should be accompanied by pledge letters or memorandum of deposits duly signed by the pledger. The pledger need duly receipt all deliveries made by the banker.
Mortgage of movable property is called hypothecation. The securities remain in possession of the borrower and are only equitably charged to the banker under documents executed by him. The particulars of the securities and their quantities are declared by the borrower through periodical statements on the basis of which the drawings are regulated by the banker.
MORTGAGE:
A mortgage is the transfer of an interest in specific immovable property as a security for repayment of a debt. The banker is usually concerned with English mortgage or equitable mortgage or registered or legal mortgage for the purpose of making advances where the ownership of the property is transferred to he mortgagee by registration of the mortgage deed.
Normally, the possession of the property remains with the mortgagor who has a right to redeem the property on payment of the outstanding advances.
PLEDGE:
Pledge means bailment or delivery of goods or documents of title to goods by the borrower to the creditor with the intention of creating a charge thereon as security for debt. The ownership remains with the pledger subject to certain interests of the pledgee in the security concerned. In a pledge the debtor-customer delivers the possession of the securities to the banker and the banker holds the possession of securities until the debt is discharged.
This is the essence of a pledge which is a bailment of movable property by one person to another to secure repayment of the securities is held by the banker (pledgee) the ownership thereof lies with the debtor (pledger) who is entitled to return of the same upon repayment of the debt including interest and other expenses. If the debt remains unpaid the banker has a right of sale of the securities and can exercise this power with or without recourse to the court after giving a proper notice to the pledger.
Generally, goods, produces and other merchandises of bulky nature are stored in the borrower’s godown. Other securities namely stock exchange securities are stored in the bank’s own strong-room. Wherever the pledged securities are stored, the banker has to keep them under his lock and key and to maintain watch and ward. Also, the securities are required to be adequately covered by insurance against fire and R.S.D. risks.
All pledges should be accompanied by pledge letters or memorandum of deposits duly signed by the pledger. The pledger need duly receipt all deliveries made by the banker.
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10 August 2011
I agree with the expert.
HYPOTHECATION:
Only title deeds are deposited with the concerned person
MORTGAGE:
Documents are executed and in revenue and the other authorities records the entries are made for mortgage
Pledge
Goods are in the custody of others
HYPOTHECATION:
Only title deeds are deposited with the concerned person
MORTGAGE:
Documents are executed and in revenue and the other authorities records the entries are made for mortgage
Pledge
Goods are in the custody of others
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10 August 2011
Mortgage is defined in section 58 of the Transfer of property Act,1882.It is the transfer of an interest in specific immovable property for the purpose of securing payment of money advanced by way of loan.
Hypothecation is not defined in law except in "The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act". In commercial parlance, it refers to the creation of an equitable charge which is created in favour of the lender by executing an agreement in respect of the movable securities of the borrower.
Pledge is defined in section 172 of the Indian Contract Act,1872. It is the bailment of goods as security for payment of a debt or performance of a promise.The ownership of the goods remains with the pledger while the lender gets certain defined interest in the goods.
Hypothecation is not defined in law except in "The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act". In commercial parlance, it refers to the creation of an equitable charge which is created in favour of the lender by executing an agreement in respect of the movable securities of the borrower.
Pledge is defined in section 172 of the Indian Contract Act,1872. It is the bailment of goods as security for payment of a debt or performance of a promise.The ownership of the goods remains with the pledger while the lender gets certain defined interest in the goods.
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