BANKING AFFAIRS

Detailed explanation-1: -A mortgage is a transfer of an interest in immovable property and it is given as a security for a loan. The ownership of an immovable property remains with the mortgagor itself but some interest in the property is transferred to the mortgagee who has given a loan.

Detailed explanation-2: -Mortgage bonds This is also a form of security where a debtor gives his/her immovable property in favour of a creditor to secure a loan. Put simply, a mortgage bond is created when a borrower and lender enters into an agreement in terms of which the lender provides a loan to the debtor.

Detailed explanation-3: -In fact, ‘chattel mortgage’ has been commonly used to describe mortgages of movable property. Like in case of immovable property, a mortgage of movable property transfers an interest in property to the lender to secure the payment of the obligation of the borrower.

Detailed explanation-4: -A. Security on immovable property for a loan given by a bank. Security on movable property for a loan given by a bank. Security on immovable property for a deposit received by a bank.

Detailed explanation-5: -Hypothecation is the pledging of an asset as collateral for a loan, without transferring the property’s title to the lender. In a mortgage, the property purchased is used to secure the loan, but the lender holds the title.