Equitable Mortgage is created under Section 58(f) of the Transfer of Property Act by delivery of title deeds with an intent to create security. It is popular due to low cost (no registration needed) but can only be created in notified towns.

Pledge involves the bailment (delivery of possession) of goods as security for a debt. The Bank (Pledgee) holds possession, while the Borrower (Pledgor) retains ownership rights.

Surprisingly, Hypothecation was not defined in Indian law until the SARFAESI Act, 2002 (Section 2(n)). It refers to a charge on movable property without delivery of possession.

Assignment involves the transfer of rights to claim a debt or benefit. It is used for Actionable Claims like insurance policies and book debts. (Immovable = Mortgage; Goods = Pledge/Hypothecation).

Book debts are movable current assets. Since possession cannot be handed over to the bank (unlike pledge), a charge is created by way of Hypothecation of book debts. (Assignment is also a legal mode, but Hypothecation is the common banking practice for working capital limits against receivables).

Section 17 of the Registration Act mandates that any non-testamentary instrument transferring interest in immovable property of value ?100 or upwards must be registered to be legally valid.

Negative Lien is a negative covenant. It does not create a charge for the bank but prevents the borrower from pledging the assets to someone else, keeping them free for the bank if needed later.

The critical condition under Section 58(f) of the Transfer of Property Act is that the act of delivery of title deeds must take place in a town notified by the State Government. The property itself can be located anywhere in India.

Hypothecation agreements typically contain a clause empowering the bank to take possession of the goods in case of default. Once possession is taken, the charge converts from Hypothecation to Pledge.

Under Section 38 of the Insurance Act, 1938, notice of assignment must be served to the Insurer to register the bank's interest. Without this, the assignment is not binding on the Insurer.

Particular Lien (e.g., repairer's lien) is restricted to the specific goods on which labor/skill was exercised, unlike Banker's General Lien which extends to general balance.

A public company is strictly prohibited from giving any financial assistance for the purchase of its own shares or lending against the security of its own shares (Buy-back is a separate process). Banks also cannot lend against their own shares (BR Act Sec 20).

Goods left for safe custody are entrusted for a specific purpose, making the bank a Bailee. This specific purpose overrides the general lien. A bank cannot exercise lien over items in safe custody or lockers.

Under Section 77 of the Companies Act, 2013, charges on a company's assets (movable or immovable) must be registered with RoC. However, Pledge is exempted from this requirement. Hypothecation and Mortgage charges must be registered.

Under Section 176 of the Contract Act, if the Pawnor defaults, the Pawnee may sell the thing pledged on giving the Pawnor reasonable notice of the sale . No court order is needed.