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The three terms pledge, hypothecation and mortgage denote the charge (read right) of the bank on the property offered as collateral (read security). They vary with each other broadly on the basis of asset's nature (movability) and its possession. (Lien - Lien is simple. It is 'Right to retain'.)
Assignment of Book Debts means the assignment of book debts, executed and delivered by the Borrower, substantially in the form of Exhibit J-2 hereto. Assignment of Book Debts means the assignment of book debts to be executed and delivered by the Borrower as amended, restated and otherwise modified from time to time.
Assignment is an arrangement involving contracts, in which one party assigns rights and responsibilities outlined in a contract to another party. Hypothecation allows a borrower to hold onto a property while using it as security for a loan.
Assignment allows a party with lien rights to transfer their rights (and rights to any related court lawsuit or arbitration) to a third party.
Hypothecation of stock / book-debts credit facility is available as a working capital for development of business against prime security of stock or book debts. Trading / Manufacturing units, Traders, Business community can avail the credit facility.