Pledge Agreement
/ˈplɛdʒ əˌɡriːmənt/
Definitions
- (n.) A secured financing contract whereby personal property is delivered as collateral to the lender while ownership remains with the borrower until repayment.
The borrower signed a pledge agreement granting the lender a security interest in the inventory.
Forms
- pledge agreement
- pledge agreements
Related terms
See also
Commentary
A pledge agreement typically requires the debtor to deliver possession of collateral to the creditor, distinguishing it from other security interests that may not require transfer of possession.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.