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Types of Collaterals
What is collateral security in the context of bank lending?
Collateral security is an asset pledged by a borrower to a lender as additional security for a loan, which the lender can seize and sell if the borrower defaults.
What is a simple mortgage and how does it differ from other mortgages?
Mortgagor binds himself to repay and agrees to sell property if default occurs.
What is the difference between primary security and collateral security?
Primary security is the asset directly created or purchased from the loan proceeds, while collateral security is any additional asset offered by the borrower or a third party to further secure the loan.
What is a conditional sale mortgage under the Transfer of Property Act?
Mortgagor ostensibly sells property with condition to repurchase on repayment.
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