Explain the type of relationship between banks and their borrowing customers who borrow against securities from the bank.
CS Professional · Banking - Law & Practice · PYQS · June 2019
Explain the type of relationship between banks and their borrowing customers who borrow against securities from the bank.
Answer & Explanation:
When a customer borrows against tangible securities, the following relationships are created depending on the transaction and security offered. A few examples in this regard are as under: Security Charge Borrower Bank Insurance policy / book debts Assignment Assignor Assignee Property Mortgage Mortgagor Mortgagee Gold ornaments/shares Pledge Pledgor Pledgee Stocks/debtors / Car/Machinery Hypothecation Hypothecator Hypothecatee
Topics: Banking Law & Practice
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