Mortgage is not carried out in the form of transferring the possession of collateral, and the mortgagor is still responsible for the custody of collateral; Pledge has changed the form of possession of pledged property, and the pledgee has the responsibility to keep the pledged property. Generally speaking, the mortgagor shall be responsible for the damage or value reduction of the collateral, and the pledgee shall be responsible for the damage or value reduction of the collateral.
Creditors have no direct right to dispose of the collateral, and need to negotiate with the mortgagor through prosecution or complete the disposal of the collateral after a court decision; The pledgee may dispose of the pledged property beyond the time stipulated in the contract without consultation or court judgment.
Under what circumstances to choose, mainly depends on the difference between personal preferences.
Extended data
The difference between mortgage and pledge is also reflected in the following aspects:
1. The subject matter of mortgage is movable property and immovable property; The object of pledge is movable property and property rights (such as securities and bills). ).
2. Collateral does not transfer possession; The pledge must be transferred for possession.
3. The parties may voluntarily apply for mortgage registration, and the mortgage contract shall take effect from the date of signing; If the parties do not need to register for pledge, the pledge contract shall come into effect from the date of delivery of the pledge or the certificate of rights.
4. If the parties handle the mortgage registration, the registration department shall be the corresponding management department of the collateral; Where shares or intellectual property rights are pledged, the parties concerned shall register the pledge with the corresponding management agencies.
5. If the mortgagee is not paid off at the expiration of the debt performance period, he may negotiate with the mortgagor to obtain compensation by discounting the collateral or auctioning or selling the collateral. If the agreement fails, a lawsuit may be brought to the people's court; If the pledgee is not paid off at the expiration of the debt performance period, it may agree with the pledger to discount the pledged property or auction or sell the pledged property according to law to pay off the creditor's rights.
Jimo district people's government-the difference between pledge and mortgage
China CITIC Bank-Difference between Personal Pledged Loan and Mortgage Loan