x 19. A vehicle loan is granted 0/5
against the security of
mortgage of the vehicle financed
pledge of the vehicle financed
hypothecation of the all
assests of the borrower
Х
hypothecation of the vechicle
finanaced
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Hypothecation occurs when an asset is pledged as collateral to secure a loan. The owner of the asset does not give up title, possession, or ownership rights, such as income generated by the asset. However, the lender can seize the asset if the terms of the agreement are not met.
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