What is the difference between applets loaded over the internet and applets loaded via the file system?

Regarding the case where an applet is loaded over the internet, the applet is loaded by the applet classloader and is subject to the restrictions enforced by the applet security manager. Regarding the case where an applet is loaded from the client’s local disk, the applet is loaded by the file system loader. Applets loaded via the file system are allowed to read files, write files and to load libraries on the client. Also, applets loaded via the file system are allowed to execute processes and finally, applets loaded via the file system are not passed through the byte code verifier.