The pledge creditor is entitled to possession and control of all income generated during the term of the deposit, unless otherwise agreed. This income reduces the amount of the debt and the pledge creditor must make the pledge creditor liable for this. In addition, the secured creditor is entitled to reimbursement of the costs incurred in the preservation, maintenance and protection of the property. Finally, the creditor must not remain a party to the deposit contract indefinitely. It may sell or transfer its participation in the deposit contract to a third party. However, the deposit holder must inform the deposit holder that the deposit contract has been sold or reassigned; Otherwise, it must be converted. The asset is only a guarantee for the lender in case of default of the borrower. However, for the borrower, the mortgaged assets could contribute significantly to the granting of the loan. Using the asset to secure the bond may allow the borrower to charge a lower interest rate on the bond than he would have made on an uninsured loan. Generally, asset-based mortgages offer borrowers better interest rates than unsecured loans. The borrower transfers a mortgaged asset to the lender, but the borrower still retains ownership of the valuable property.
In case of delay of the borrower, the lender is entitled to take ownership of the mortgaged asset. The borrower retains all dividends or other income from the asset during the seizure. With regard to pledge rights, both parties have certain rights and commitments. The deposit contract is only one sentence: the conditions under which the debt or obligation is fulfilled and the pledged property is returned. On the one hand, the rights of the holder of pledges relate to the conservation and protection of his property, whereas they are held by the holder of the deposit. The property may not be used without permission, unless the use is necessary for its preservation, for example. B the exercise of a live animal. the unauthorized use of the immovable property is called transformation and may make the deposit holder liable for damage; Therefore, Mary should not use John`s stereo while she is in possession of it.