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    Question

    In the context of 'Charges on Securities', consider

    these statements: 1. In a Pledge, the bank has the right to sell the goods without a court order after giving due notice. 2. In Hypothecation, the bank is the constructive possessor of the goods. 3. Mortgage is a charge created specifically on movable property. Which of the statements above is/are correct?┬а
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer
    E 1 only Correct Answer Incorrect Answer

    Solution

    Statement 3 is incorrect. A Mortgage is a charge created on immovable property (like land or buildings). Charges on movable property include Pledge, Hypothecation, and Lien.

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