JAIIB LRAB Unit 17 - Law Relating to Securities and Modes of Charge-II

JAIIB LRAB Unit 17 - Law Relating to Securities and Modes of Charge-II (Year: 2019)

Pledge
Mortgage
Hypothecation
Banker’s Lien
Set-Off

Pledge	Mortgage
Pledge required only a limited interest in the property and ownership remains with the right of pledger.	Here the legal ownership passes to mortgagee. Of course subject to the mortgagor to redeem the property
The Pawnee has “special property” in the goods decree of pledged	The mortgage as a rule, takes decree of a Court of Law before having recourse against the property mortgaged.
Pawnee has no right to foreclosure	In certain cases, the mortgagee can foreclose the property.

Pawnor – The person whose goods are bailed

Pawnee – The person who takes the goods for security

Pledge means bailment of goods for the purpose of securing a payment of debt or an obligation.

A valid pledge can be created by owner of goods or a mercantile agent

A constructive pledge involves only delivery of keys of the warehouse.

Under the Contract of pledge the Pawnee can sell the goods pledged after notice or retain the goods and file a suit for recovery of debt.

Hypothecation	Mortgage
The mortgage of moveable property is called Hypothecation	Mortgage relates to immoveable property
There is only obligation to repay the money and no transfer of interest	There is transfer of interest.

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