what is loan of hypothecation

Answer Posted / gopal m l k n

The established practice of a borrower pledging an asset as collateral for a loan, while retaining ownership of the assets and enjoying the benefits therefrom. With hypothecation, the lender has the right to seize the asset if the borrower cannot service the loan as stipulated by the terms in the loan agreement. Hypothecation also refers to securities in a margin account that an investor uses as collateral to borrow funds from a brokerage.

Is This Answer Correct ?    0 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Define GDP? What is the current GDP rate in the economy?

612


What details does a deposit receipt include?

588


Name Different Terms of Issue of Shares?

612


how to make a best portflio and its compartive each other and why chosen the different different portfoili. explain with examples?

1689


What is Plastic currency?

724






What are the leadership qualities you have?

657


Tell me about some macroeconomic trends going on in the world today.

606


Do you anything about bureaucracy?

699


What are quasi sovereign bonds?

708


If there is some mistake in my resume, how can I rectify it?

593


what are the requirements to connect Tally ERP 9 remotely?

673


What is NEFT / RTGS?

717


The rule of the Risk management provides a basic framework within which risk management decision can be made .Doscuss.

1968


What is bank and its features and its types?

674


What do you know about primary, secondary and tertiary sector?

637