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In this video I Told How to check hypothecation in vehicle RC in simple way.
HYPOTHECATION MEANING
Hypothecation means offering an asset as collateral security to the lender. Herein, the ownership lies with a lender and the borrower enjoys the possession.
In the case of default by the borrower, the lender can exercise his ownership rights to seize the asset.
It is usually done in a case of movable assets, for creating the charge against collateral for the loan given.
Under hypothecation, the possession of the security remains with the borrower itself. Hence, if the borrower defaults on payments,
the lender would have to first take possession of the security (asset under hypothecation) and then sell the asset to recover dues.
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