When you submit a question or make a comment on our site or in our law forum, you clearly imply that you are interested in receiving answers, opinions and responses from other people. All Rights Reserved, n. A bailment of goods to a creditor, as security for some debt or engagement…, contracts. TheLaw.com Law Dictionary & Black's Law Dictionary 2nd Ed. It is possible that the law may not apply to you and may have changed from the time a post was made. Historically there were … This is a standard form of pledge agreement to be used in connection with a syndicated loan agreement. The creditor can…, The process of the law of Scotland which answers to the distress of the English…, A debt that does not have a security or collateral pledged. Real  contract—perfected  by  the  delivery  of  the  things pledged  by  the  debtor  who  is  called  the  pledgor  to  the creditor who is called by the pledgee, or to a third person by common agreement2. 1.Meaning and Definition of Pledge : Pledge also known as 'Pawn'. Future  property  cannot  be  the  subject  of  a  pledge  or mortgage2. All information available on our site is available on an "AS-IS" basis. apparel, furniture and instruments of tillage) could not be pledged in Roman law, while there is no such restriction in English law. It is intended to create a security interest over equity interests and promissory notes owned by the grantors. 1. Do my honest part. It is also of  the essence  of these contracts that when  the  principal  obligation  becomes  due,  the  things  in which the pledge or mortgage consists may be alienated for the payment to the creditor. Pledge is a deposit of personal property by way of security for the performance of another act. 2086. After a wrongful sale by a pledgee (e.g. In the civil law. The law is also subject to change from time to time and legal statutes and regulations vary between states. Care for my body. [1][2] The term is also used to denote the property which constitutes the security. [3], As the pledge is for the benefit of both parties, the pledgee is bound to exercise only ordinary care over the pledge. Third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property. Recovery of Real or Personal Property, Damages, etc... Non-payment / Underpayment of Salaries and Benefits. Where  mortgage  is  gratuitous—same  should  be  strictly construed4. REQUISITES TO A CONTRACT OF PLEDGE. PLEDGE. The law of pledges is quite old, but in contemporary U.S. law it is governed in most states by the provisions for Secured Transactions in article 9 of the Uniform Commercial Code.