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Force of Law, not lesser than Gita, Quran and Bible. Easier, immediate and effective. A complete peace of mind within risky transactions. We pledge legally correct documents. Check the difference between hypothecation and pledge.
The hypothecation charges means the asset is given as security against a debt. The reason for distinction is that in pledge the possession of the assets passes to the lender with the movement of the lender alongside the movement of the asset. Conversely there is no transfer of possession is there in case of hypothecation.
Hypothecation is a practice, where a debtor pledges a collateral to secure a debt or as an edition precedent to the debt or a third party pledges collateral for debtor. A letter of hypothecation is instrument for carrying out the pledge.
Pledge is something held as security in a contract, a promise, or a person who is in a trial period before joining an organization. An example of pledge is down payment of cash on purchasing a car it is a promise made to the financer or creditor.
The subject matter of pledge is goods, goods pledged for shall be in existence, there shall be delivery of goods from pledger to pledge. There is no transfer of ownership in case of pledge.
The difference lies is that in a lien there is no power of sale or disposition of the goods, whereas, in a pledge there is power given to sale the goods on default. A lien is merely a personal right of retention of goods. Sale, on default is an incident of pledge.
