A deposit contract determines what is owed, the property that must be used as a guarantee and the conditions for the performance of the debt or obligation. In a simple example, John asks to borrow $500 from Mary. Mary first decides that John must promise his stereo safely, that he will pay off the debt at some point. In the law, we call John the Pledgor, and Mary the Inseparable. The stereo is called mortgaged property. As in any joint deposit agreement, the holding of mortgaged property is transferred to the pawnbroker. At the same time, however, the ownership (or title) of the mortgaged property remains a pawn. John gives Mary the stereo, but he still owns it legally. If John stirs up the debts as part of the contractual agreement, Mary must return the stereo. But if he doesn`t pay, she can sell it to pay off his debts. On the other hand, for the pawnbroker, there is more than the obligation to take care of the ownership of the pledge.
The pawnbroker is entitled to the possession and control of all income collected during the collateral period, unless otherwise agreed. This income reduces the amount of the debt and the pfandgor must bring it to justice by the pawnbroker. In addition, the pawnbroker is entitled to reimbursement of the costs incurred by the preservation, maintenance and protection of the property. Finally, the pawnbroker must not remain a party indefinitely to the deposit agreement. It may sell or sell its shares in the pawn contract to a third party. However, the pawnbroker must inform the pledge that the deposit contract has been sold or reassigned; Otherwise, she is guilty of conversion. v. to deposit personal property as collateral for a personal loan of money. If the loan is not repaid at maturity, the mortgaged personal assets are paid to the lender.
The property is called a guarantee. Promises are the same as instructions. 2) to promise to do something. (See: Peasants) Pledge, contracts. Who becomes someone else`s security, and in that sense, whoever becomes a surety for another is a promise. 4 Inst. 180 Dig. B. See wishes. Promises differ from sale.
In the case of a sale, the property and property are transferred to the buyer on a permanent basis. As a pledge, only possession is handed over to another party. The first part retains ownership of the building concerned, while the second part takes possession of the property until the terms of the contract are fulfilled.