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TYPES OF CHARGE AND SFB
What is a 'charge' in the context of banking and secured lending?
A charge is a right created by a borrower in favour of a lender over the borrower's assets as security for repayment of a debt, giving the lender a claim over those assets in case of default.
What is a conditional sale mortgage under the Transfer of Property Act?
Mortgagor sells property conditionally, redeemable on repayment of debt.
What is the difference between a fixed charge and a floating charge?
A fixed charge is attached to a specific identified asset that the borrower cannot deal with freely, whereas a floating charge hovers over a class of assets (like stock-in-trade) that the borrower can use in the ordinary course of business until crystallisation.
What is an anomalous mortgage under Indian property law?
A mortgage that does not fall under any of the five defined types.
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