Question

Which of the following statements correctly highlights a key distinction between a Pledge and a Mortgage regarding legal interest and foreclosure rights?

Q: Answer-Which of the following statements correctly highlights a key distinction between a Pledge and a Mort...

o Pledge The pledger retains ownership while the pledgee acquires only a special property limited interest in the pledged goods. The pledgee has no right of foreclosure and can only sell the goods upon default after giving reasonable notice. o Mortgage Legal ownershipinterest passes to the mortgagee, subject to the mortgagors right to redeem. The mortgagee usually files a suitdecree in court and, in certain cases, holds the right of foreclosure.

A In a pledge, legal ownership passes to the pledgee, whereas in a mortgage, legal ownership remains strictly with the mortgagor.

B A pledgee (pawnee) has the right of foreclosure, while a mortgagee can only sell the goods after giving reasonable notice.

C A pledgee acquires a 'special property' interest with no right of foreclosure, whereas a mortgagee gets legal interest/ownership passing to them (subject to redemption) and may foreclose in certain cases.

D Both pledgee and mortgagee can sell the property directly without providing any notice or obtaining a court decree.

E A pledge applies exclusively to immovable properties, whereas a mortgage applies only to moveable goods.

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Which of the following statements correctly highlights a key distinction between a Pledge and a Mortgage regarding legal interest and foreclosure rights?

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