Unit – 17 : Law Relating to Securities and Modes of Charge-II
Pledge Mortgage Hypothecation Banker’s Lien Set-Off
|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.
|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.