24 E TYPES OF CHARGES
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What is a charge in the context of banking security?
A charge is a right created by a lender over the borrower's assets as security for repayment of a loan, giving the lender certain rights over those assets in case of default.
What is a charge by way of conditional sale under the Transfer of Property Act?
Mortgage where property is sold conditionally with repurchase right on repayment.
What is the difference between a fixed charge and a floating charge?
A fixed charge is attached to specific identified assets and the borrower cannot deal with those assets without the lender's consent, while a floating charge hovers over a class of assets that changes from time to time in the ordinary course of business.
What is anomalous mortgage under the Transfer of Property Act, 1882?
Any mortgage that does not fall under the five recognised mortgage types.
What is a pledge in banking parlance?
A pledge is the bailment of goods as security for payment of a debt or performance of a promise, where the pledgor delivers possession of movable goods to the pledgee (lender) while retaining ownership.
What is a possessory lien in banking security law?
Right to retain possession of goods until dues are paid.
What is a hypothecation charge?
Hypothecation is a charge created on movable assets where the borrower retains both ownership and possession of the asset but creates an equitable charge in favour of the lender without transferring possession.
What is a constructive pledge in banking?
Pledge created by transfer of document of title without physical delivery of goods.
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