Banking Businees ppt.
These are the assetsdirectly relatedto your business or project for which you have taken a loan and kept that as security These areany assetsother than primary securities, which are kept as security against taking credit or a loan. A lien is the right to retain property in its possession till its bankers dues are cleared by the borrower Hypothecationis used for creating charge against the security of movable assets. Pledgeis used when the lender (pledge) takes actual possession of assets (i.e. certificates, goods ) MORTGAGE is used for creating charge against immovable property which includes land, buildings or anything that is attached to the earth or permanently fastened to anything attached to the earth. Assignment occurs when the owner of a contract, known as the assignor, gives a contract to another party, known as the assignee.
Banking Businees ppt.
- 1. Presented by: SUMANT KR. SINGH MBA/15017/15 PRESENTED IN Class of :- Amit Gaurav SIR
- 2. These are the assets directly related to your business or project for which you have taken a loan and kept that as security. So a primary security can be the thing that is being financed. For example: a factory for which u have taken loan and kept that as security, taken loan for a car and kept that as security, etc.
- 3. These are any assets other than primary securities, which are kept as security against taking credit or a loan. It can also be issued by a third party or any intermediary. For example: taking a personal loan and mortgaging your house, hypothecation of jewellery against any loan, etc.
- 4. Lien Hypothecation Pledge Mortgage Assignment
- 5. LIEN. A lien is the right to retain property in its possession till its bankers dues are cleared by the borrower. Lien gives banker only a right to retain the possession of the goods and not the power to sell.
- 6. LIEN. Thus lien is:- 1. A right of retaining property belonging to the debtor. 2. till all dues due to the borrower are cleared.
- 7. HYPOTHECATION Hypothecation is used for creating charge against the security of movable assets. But here the possession of the security remains with the borrower itself. Thus, in case of default by the borrower, the lender will have to first take possession of the security and then sell the same.
- 8. HYPOTHECATION The best example of this type of arrangement are Car Loans. In this case Car / Vehicle remains with the borrower but the same is hypothecated to the bank / financer.
- 9. PLEDGE Pledge is used when the lender (pledge) takes actual possession of assets (i.e. certificates, goods ) Such securities or goods are movable securities. In this case the pledgee retains the possession of the goods until the pledgor (i.e. borrower) repays the entire debt amount.
- 10. MORTGAGE MORTGAGE is used for creating charge against immovable property which includes land, buildings or anything that is attached to the earth or permanently fastened to anything attached to the earth. The best example when mortage is created is when someone takes a Housing Loan / Home Loan.
- 11. In this case house is mortgaged in favour of the bank / financer but remains in possession of the borrower, which he uses for himself or even may give on rent.
- 12. ASSIGNMENT. An assignment constitutes an action taken with a contract. Assignment occurs when the owner of a contract, known as the assignor, gives a contract to another party, known as the assignee.
- 13. When it comes to loans, assignment can relate to life insurance policies and mortgage contract from one party to another.