Difference between Pledge and Hypothecatio
10 Replies
Preeti
(Student)
(32 Points)
Replied 28 April 2008
I want to know difference between Pledge and Hypothecation
Preeti
(Student)
(32 Points)
Replied 28 April 2008
Tell me is their any difference in pledge and Hypothecation
vivek das
(student)
(0 Points)
Replied 28 April 2008
hiiii preeti .vivek here iam a pcc student and having my attempt in nov.08 so please provide me guidance how to complete my course of activity before exams......... provide me guidance how to study i will bw waiting for ur rply
Vinod Kashyap
(XBRL Training)
(451 Points)
Replied 28 April 2008
Pledge & Hypothecation terms are commonly used in banking.
Pledge is a form of security to assure that a person will repay a debt under contract. In Pledge borrower temporarily gives possession of the property to the lender.
Hypothecation is also a form of security in which the borrower offers assets owned by him viz : stocks, bonds, other movable assets as Collateral Security for loan without transferring title to the lender. However, the lender gets a right to sell the property in the event of default by the borrower.
Gayathri Devi
(CA Final)
(882 Points)
Replied 28 April 2008
Hi Preethi,
Pledge means possessing the movable property whereas Hyphothecation is possessed on immovable property.
Possession of property will be with the lender in case of hyphothecation possession of property will be with borrower itself
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