Method of charge creation

Method of creating charges on security

1. Lien
2. Assignment
3. Set-off
4. Pledge
5. Hypothecation
6. Mortgage

 Lien:
The lien is a mode of creation of charge specially on assets of financial instruments like fixed deposit, TDR, deposit balance etc.

Assignment:
It is a mode of creation of charge on the financial instrument like Bills Receivables covering security against debt and be liquidated against debt when the Bills becomes matured. Here the owner of the proceeds of Bills is known as Assignor, the Bank is Assignee and the proceeds received from whom is known as Debtor of Assignor.