Hypothecation Agreement Meaning India

the mortgage instrument is an agreement that contains default features and rules; which generally cover the following points: definitions, insurance, inspection rules, rights and remedies of each party, security details marked for multiplication, sales achievements, insurance income, liability of each party, jurisdiction in force, identification of assets, etc. This document protects the rights of both parties. However, pledging is not defined in the Indian Contracts Act 1872, but section 2(1)(n) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SRFAESI) Act, 2002 defines the obligation as follows: formerly, the seizure was considered a pledge and the holding of the security was transferred in trust by the lender to the borrower. .