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Hypo The Cation
Hypo The Cation
Hypothecation is the practice where a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral, but it is "hypothetically" controlled by the creditor in that he has the right to seize possession if the borrower defaults. A common example occurs when a consumer enters into a mortgage agreement, in which the consumer's house becomes collateral until the mortgage loan is paid off.
Features
Hypothecation in consumer and business finance No creditor's duty of care in India Hypothecation in the investment markets Rehypothecation