Banking News

Category Archives: Laws related to security offered to banks

  • Trust Receipt under the contract of pledge

    “Trust Receipt” under the contract of pledge In “trust receipt” under the contract of pledge, the borrower gets his assets/goods released from the pledge, only on full payment of his dues which automatically terminates contract of pledge. However in case of Key cash Credit or Key Loan, if bank…

  • Pledge and Pledgee’s right & duties

    Pledge is only a special kind of bailment where the object of the delivery of assets/goods is to provide a security for a loan or for the fulfillment of an obligation. Section 148 of the Indian Contract Act, 1872 defines the” bailment”. Section 172 to 176 of the Indian…

  • What is the meaning of Right of Lien?

    Meaning of Lien: Lien is akin to bailment. It is the right to retain goods or securities belonging to a debtor until dues are paid fully to the retainer (creditor). No special agreement is necessary for creating the right of lien. However a general lien may be created by special…

  • Lender’s right under hypothecation of assets

    The lender’s right under the term “Hypothecation of assets” is not defined in anywhere in the statute. Some courts have even compared   ‘hypothecation to mortgage of movables’. In hypothecation, neither the possession of assets nor the ownership of the assets transferred to the lender (hypothecatee). The asset hypothecated remains…

  • Definition of Assignment and actionable claim

    When the rights, title and interest in debts due or accruing due to a person are transferred to another person, it is called assignment and actionable claim means any claim other than the debt to mortgage of immovable property or hypothecation or pledge of goods and receivables. Transfer of   Life Insurance…

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