What is a Pledge?
By Nicholas Ortiz, Boston Bankruptcy Attorney on Oct 11, 2007 in General Bankruptcy Information
A pledge is a temporary grant of property as collateral for a debt. The debtor puts the collateral for the debt into the possession of the lender who can sell the property if the debtor defaults. Terms like pledge are no longer used in Article 9 of the U.C.C.–the term “security interest” is used.
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