Monday 4 July 2011

Hypothecation and Pledge

 Hypothecation and Pledge
 Hypothecation as a Mode of Charge:
    Hypothecation is a charge against movable property for an amount of debt where neither ownership nor possession is passed on to the creditor.

Pledge as a Mode of Charge:
    Pledge is said to be created when the goods are handed over by the borrower or the prospective borrower to the lender or to someone on his behalf with the intention of their being treated as security for the repayment of the advance.

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