Bill mortgage refers to the loan financing obtained by the note holder from the bank using the undue bills that have been accepted as collateral. When handling a bill mortgage, banks usually require the borrower to sign the name and date on the back of the bill. If the debtor is unable to repay when due, the bank can pursue recourse based on the endorsement.

Bill mortgage behavior is different from bill discounting. Discounting is the transfer of creditor's rights. After the bill matures, the bank should first collect payment from the acceptor. If it cannot be collected, it can seek recourse from the discount applicant. In the bill mortgage business, the mortgage applicant and the lending bank are a direct creditor's right and debt. relationship, before the note matures, the applicant should take the initiative to repay the loan and redeem the mortgage note, and the note holder will collect payment from the note debtor when it expires.

The difference between mortgage and pledge is:

The subject matter of the mortgage is usually real estate and special movable property (cars, boats, etc.); the pledge is mainly movable property.

A mortgage must be registered to become effective, while a pledge only requires possession.

Mortgage only has a pure guarantee effect, while in a pledge, the pledgee not only controls the pledged property, but also has the effect of lien.

The realization of mortgage rights is mainly through applying to the court for auction, while the pledge is mostly sold directly.