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Pledge: Difference between revisions
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A rare beast, in the annals of finance. A {{tag|legal security}} interest. | |||
===What?=== | |||
A pledge is a [[security interest]] —a type of [[bailment]], if we're getting technical — created by transferring possession of an asset [[by way of security]] for a an obligation, with the intention to create that security interest | |||
It is the act of pledging, not the document evidencing the pledge, which matters. | |||
The [[pledgee]] takes a “special” proprietary legal interest in the assets, though, but does ''not'' take legal title to them. The key factor is possession. This makes them kind of awkward where the debtor wants to carry on holding or using the asset — in that case a charge or an assignment by way of security is better — but you do see it (as for example in the {{1995csd}} — though that document is far less popular than the non-pledge {{1994csa}}, which is a straight out [[title transfer collateral arrangement]]. | |||
{{Titletransfervspledge}} | {{Titletransfervspledge}} | ||