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A pledge usually has no legal inclination whereas hypothecation has legal consequences in the event you fail to honor your word.
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What are the imp mode of creating charge on secured loan advances?
Lien, Pledge, Hypothecation and Mortgage are the four main modes of creating security....
What is the difference between mortgage and pledge and Hypothecation?
MORTGAGE: mortgage as "the transfer of interest in specific immovable property for the purpose of securing the payment of money, advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability". The transferor is called the 'mortgagor,' the transferee is a 'mortgagee'. The principal money and interest thereon, the payment of which is secured are called the 'mortgage money'. PLEDGE : pledge as "bailment of goods as security for payment of a debt or performance of a promise". The person who offers the security is called 'pawner' or 'pledger' and the bailee is called the 'pawnee' or 'pledgee'. In case of pledge: There should be bailment of goods; and The objective of the bailment should be to hold the goods as security for the payment of a debt or the performance of a promise. The bailment should be on behalf of a debtor or an intending debtor. The pawner or pledger remains the owner of the property except to the extent of interest which rests with the pledge because of the loan borrowed from the bank. There is actual or constructive delivery of goods. Pledge is not created in respect of future goods. The goods must be specific and be capable of identification. The goods must be in possession of pledgee. Otherwise there is no pledge. Pledge agreement may be oral or implied. HYPOTHECATION: Hypothecation is a charge against property for an amount of debt where neither ownership nor possession is passed to the creditor. Hypothecation is a charge against movable property. The goods will, unlike a pledge, be retained by the borrower and be in the borrower's possession. The borrower gives only a letter stating that the goods are hypothecated to the banker as security for the loan granted. There will be no transfer of the property to the borrower. Features: It is an equitable charge created against immovable property. Neither the possession nor the ownership of the property is transferred to the banker. The contents of the letter of hypothecation determine the rights of the banker. The banker has the right to take possession of the property (if there is default) and sell the hypothecated goods to realize his dues. If selling rights are not incorporated in the letter, the banker has to approach a court of law to recover the dues against the hypothecated property. Hypothecated goods can be sold any time to the genuine purchaser for value without the knowledge of the banker or the hypothecated property can be pledged to another person provided the pledgee has no knowledge of the previous hypothecation.
What is the difference between collateral and pledge?
There is not much difference between collateral and pledge. If you put something up as collateral, if you fail to pay the loan, the item that you pledged will be taken. Either word can be used.
What is the difference between a mortgage and a hypothec?
Mortgage is a contract between the lender and the borrower that allows an individual to borrow money from a lender for the purchase of housing. Hypothecation is a charge that is created for assets that are moveable such as vehicles, stocks, debtors.
What is difference between mortgage and hypothecation?
Hypothecation is to pledge personal property, or a ship, as security for a debt without transferring possession or title.A mortgage is a loan secured by real property. A person who grants a mortgage either transfers title to the lender or permits a voluntary lien on the property. Hypothecation Last modified on 24 May 2012 at 18:11A Hypothecation is a charge, which is resorted to by the borrower, where transfer of possession of property from the borrower to the banker or creditor is either impracticable or inconveinient. In other words, the borrower retains the ownership of the security or collateral pledged to the banker. Possession remains witht the borrower, but the ownership of the property remains with the banker till the loan is closed in full.For example, when a borrower takes a bank loan to purchase a laptop or colour TV, an equitable charge, known as hypothecation, is created in favour of the banker. Here, though the possession of the laptop and the TV will be with the borrower, the ownership remains with the banker till the entire loan is closed. In other words, it is "hypothetically" controlled by the banker or creditor who has the right to seize possession of the goods secured to him when the borrower defaults in making payment of the loan.A mortgage is the transfer of interest in a specific immovable property by one person to another for the purpose of securing a loan or advance of money. The person who transfers the interest in a specific immovable property is known as the mortgagor and the person to whom it is transferred is called the mortgagee. The instrument or the note through which the mortgage is effected is called mortgage deed.The main point to be noted is that, in a mortgage, the mortgaged property is not transferred to the mortgagee. It usually remains with the borrower or mortgagor. Only interest in the mortgaged property is transferred from the mortgagor (borrower) to the mortgagee (the banker).On repayment of the loan, the interest in the property is re-transferred to the mortgagor (borrower). However, when the borrower fails to repay the loan dues, the mortgagee (banker) gets the right to sell the property and recover his loan dues from the sale proceeds of the property.The differences between a hypothecation and a mortgage is as follows:1. A Hypothecation refers to a movable property, whereas a mortgage generally refers to an immovable property.2. A hypothecation can be created without executing a document. But for creating a mortgage, documents have to be executed.3. In a hypothecation legal interest is not transferred to the creditor (banker) whereas, in a mortgage, legal interest in the mortgaged property is transferred to the creditor (banker).M.J. SUBRAMANYAM, XCHANGING, BANGALORE
What are the imp mode of creating charge on secured loan advances?
Lien, Pledge, Hypothecation and Mortgage are the four main modes of creating security....
What is the difference between mortgage and pledge and Hypothecation?
MORTGAGE: mortgage as "the transfer of interest in specific immovable property for the purpose of securing the payment of money, advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability". The transferor is called the 'mortgagor,' the transferee is a 'mortgagee'. The principal money and interest thereon, the payment of which is secured are called the 'mortgage money'. PLEDGE : pledge as "bailment of goods as security for payment of a debt or performance of a promise". The person who offers the security is called 'pawner' or 'pledger' and the bailee is called the 'pawnee' or 'pledgee'. In case of pledge: There should be bailment of goods; and The objective of the bailment should be to hold the goods as security for the payment of a debt or the performance of a promise. The bailment should be on behalf of a debtor or an intending debtor. The pawner or pledger remains the owner of the property except to the extent of interest which rests with the pledge because of the loan borrowed from the bank. There is actual or constructive delivery of goods. Pledge is not created in respect of future goods. The goods must be specific and be capable of identification. The goods must be in possession of pledgee. Otherwise there is no pledge. Pledge agreement may be oral or implied. HYPOTHECATION: Hypothecation is a charge against property for an amount of debt where neither ownership nor possession is passed to the creditor. Hypothecation is a charge against movable property. The goods will, unlike a pledge, be retained by the borrower and be in the borrower's possession. The borrower gives only a letter stating that the goods are hypothecated to the banker as security for the loan granted. There will be no transfer of the property to the borrower. Features: It is an equitable charge created against immovable property. Neither the possession nor the ownership of the property is transferred to the banker. The contents of the letter of hypothecation determine the rights of the banker. The banker has the right to take possession of the property (if there is default) and sell the hypothecated goods to realize his dues. If selling rights are not incorporated in the letter, the banker has to approach a court of law to recover the dues against the hypothecated property. Hypothecated goods can be sold any time to the genuine purchaser for value without the knowledge of the banker or the hypothecated property can be pledged to another person provided the pledgee has no knowledge of the previous hypothecation.
What is the difference between collateral and pledge in the following sentence. Secured bonds are backed by a pledge of collateral?
There is not much difference between collateral and pledge. If you put something up as collateral, if you fail to pay the loan, the item that you pledged will be taken. Either word can be used.
What is the difference between collateral and pledge?
There is not much difference between collateral and pledge. If you put something up as collateral, if you fail to pay the loan, the item that you pledged will be taken. Either word can be used.
What is the difference between the pledge of allegiance and the Texas pledge?
The United States pledge Is: I pledge of allegiance to the flag of the united states of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all. The Texas pledge is I pledge of allegiance to Thee, Texas one state under God one and indivisible
What is the difference between a mortgage and a hypothec?
Mortgage is a contract between the lender and the borrower that allows an individual to borrow money from a lender for the purchase of housing. Hypothecation is a charge that is created for assets that are moveable such as vehicles, stocks, debtors.
What is difference between mortgage and hypothecation?
Hypothecation is to pledge personal property, or a ship, as security for a debt without transferring possession or title.A mortgage is a loan secured by real property. A person who grants a mortgage either transfers title to the lender or permits a voluntary lien on the property. Hypothecation Last modified on 24 May 2012 at 18:11A Hypothecation is a charge, which is resorted to by the borrower, where transfer of possession of property from the borrower to the banker or creditor is either impracticable or inconveinient. In other words, the borrower retains the ownership of the security or collateral pledged to the banker. Possession remains witht the borrower, but the ownership of the property remains with the banker till the loan is closed in full.For example, when a borrower takes a bank loan to purchase a laptop or colour TV, an equitable charge, known as hypothecation, is created in favour of the banker. Here, though the possession of the laptop and the TV will be with the borrower, the ownership remains with the banker till the entire loan is closed. In other words, it is "hypothetically" controlled by the banker or creditor who has the right to seize possession of the goods secured to him when the borrower defaults in making payment of the loan.A mortgage is the transfer of interest in a specific immovable property by one person to another for the purpose of securing a loan or advance of money. The person who transfers the interest in a specific immovable property is known as the mortgagor and the person to whom it is transferred is called the mortgagee. The instrument or the note through which the mortgage is effected is called mortgage deed.The main point to be noted is that, in a mortgage, the mortgaged property is not transferred to the mortgagee. It usually remains with the borrower or mortgagor. Only interest in the mortgaged property is transferred from the mortgagor (borrower) to the mortgagee (the banker).On repayment of the loan, the interest in the property is re-transferred to the mortgagor (borrower). However, when the borrower fails to repay the loan dues, the mortgagee (banker) gets the right to sell the property and recover his loan dues from the sale proceeds of the property.The differences between a hypothecation and a mortgage is as follows:1. A Hypothecation refers to a movable property, whereas a mortgage generally refers to an immovable property.2. A hypothecation can be created without executing a document. But for creating a mortgage, documents have to be executed.3. In a hypothecation legal interest is not transferred to the creditor (banker) whereas, in a mortgage, legal interest in the mortgaged property is transferred to the creditor (banker).M.J. SUBRAMANYAM, XCHANGING, BANGALORE
What is hypothecate?
Hypothecation is where a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral, but is hypothetcally controlled by a creditor that has the right to seize possession if the borrower defaults. A example of this is when someone enters into a mortgage agreement, which the consumer's house becomes collateral until the mortgage loan is paid off.
What is the biblical meaning of pledge?
The transfer of possession of personal property from a debtor to a creditor as security for a debt or engagement; also, the contract created between the debtor and creditor by a thing being so delivered or deposited, forming a species of bailment; also, that which is so delivered or deposited; something put in pawn., A person who undertook, or became responsible, for another; a bail; a surety; a hostage., A hypothecation without transfer of possession., Anything given or considered as a security for the performance of an act; a guarantee; as, mutual interest is the best pledge for the performance of treaties., A promise or agreement by which one binds one's self to do, or to refrain from doing, something; especially, a solemn promise in writing to refrain from using intoxicating liquors or the like; as, to sign the pledge; the mayor had made no pledges., A sentiment to which assent is given by drinking one's health; a toast; a health., To deposit, as a chattel, in pledge or pawn; to leave in possession of another as security; as, to pledge one's watch., To give or pass as a security; to guarantee; to engage; to plight; as, to pledge one's word and honor., To secure performance of, as by a pledge., To bind or engage by promise or declaration; to engage solemnly; as, to pledge one's self., To invite another to drink, by drinking of the cup first, and then handing it to him, as a pledge of good will; hence, to drink the health of; to toast.
What is a charitable pledge?
its a pledge
In taxation hypothecation meaning directing specific taxes to specific purposes What does it mean in banking?
Pledging stocks as collateral for a loan
What is the Australian pledge?
There is no Australian pledge.
