Question

What does the term "hypothecation" refer to as per the SARFAESI Act?

Q: Answer-What does the term 'hypothecation' refer to as per the SARFAESI Act?

Section 2 Definitions n hypothecation means a charge in or upon any movable property, existing or future, created by a borrower in favour of a secured creditor without delivery of possession of the movable property to such creditor, as a security for financial assistance and includes floating charge and crystallisation of such charge into fixed charge on movable property