Define a „pledge‟ and distinguish a pledge from a mortgage

Pledge Mortgage
·    This is a pawn

·    It is the delivery of goods by a debtor to a creditor as a security for the amount borrowed or advanced to the debtor.

 

·    Its salient feature is delivery of possession.

·    The creditor acquires possession while the debtor retains ownership

·    Mortgage is the conveyance of land or assignment of a chattel as security for the payment of debt or the discharge of some other obligation for which it is given.

·    Mortgage involves the use of land as security for a loan.

 

·    There is conveyance of the land to the mortgagee.

·    The mortgagor‟s right of redemption is a

critical component of a mortgage.



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