Pledge
01. Pledge created only floating assets
02. Possession of the goods held at Bank.
03. It is easy for the bank to dispose off the goods because goods are held at Bank.
04. For any damage bank will be liable.
05. For auction of goods, court order required.
Hypothecation
01. Hypothecation created on fixed/floating assets.
02. Possession of the goods held at the party.
03. It is not easy for the bank to dispose off the goods because goods are held at party.
04. For any damage party will be liable.
05. For auction sale of goods, court order is not required.