pledge

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Related to pledged: Pledged Assets

pledge

1. Law a person who binds himself, as by becoming bail or surety for another
2. take or sign the pledge to make a vow to abstain from alcoholic drink

Pledge

 

in civil law, a means of securing the performance of obligations, whereby property of a certain value is transferred to a creditor. In the event that the debtor does not fulfill the obligation secured by the pledge, the creditor has the right to satisfy his claim from the value of the property pledged in preference to other creditors. In the USSR, obligations of both citizens and socialist organizations may be secured by pledges. A pledge may be provided for by law or by contract (a pledge contract must be concluded in writing). The object of a pledge may be any property subject to execution by law. Therefore, the fixed capital of state organizations, the seed and fodder of collective farms, of other cooperative organizations, and of associations of cooperative organizations, and the fixed assets and cultural and educational resources of trade unions and other public organizations may not be objects of a pledge.

In practice three types of pledges are used. In the so-called normal conventional pledge the pledger transfers the object of the pledge to the pledgee, for example, when a loan is made by a pawnshop. In a pledge of goods in circulation, by virtue of which the pledged property remains in the possession of the pledger, he has the right to realize this property on condition of simultaneously repaying the debt that was secured by the pledge or on condition of replacing the property with another of the same or greater value. In pledges on goods that are in the process of being manufactured, by virtue of which the pledged property remains in the possession of the pledger, the pledged property may be processed in the pledger’s enterprise. In this case, the statutory pledge extends to the products (semifinished goods, finished articles) that result from this processing. A pledge of goods in circulation and of goods that are in the process of being manufactured is used in securing the credit obligations of socialist organizations in connection with bank loans. The pledger is under obligation to ensure the safety of the pledge property.

E. G. POLONSKII

References in periodicals archive ?
The easiest and most cost-effective way to do this is to borrow the pledged shares from the taxpayer and sell them short.
While the transfers do not impinge on bond security since they are not made from pledged revenues, they reduce the availability of overall department resources.
TRFs currently represent 38% of pledged revenues, while federal highway reimbursement funds equal 40%.
Fitch views this as important, since pledged revenues are closely linked to on-track attendance.
Security provisions are strong and include the requirement that the Nation comply with a rate covenant that requires that health care system revenues net of operations and maintenance (including revenues from the federal government under grant programs, which are not pledged to bondholders) equal 1.
Of the total amount of pledged revenue, slightly more than half is derived from the utility tax and sales tax.
Specific pledged motor fuel taxes to repay the bonds include the state's 17.
Approximately 75% of all pledged loans, predominately those of the 10 largest borrowers, are estimated to be investment grade quality by Fitch.
Constitutionally dedicated highway user fees and taxes provide strong coverage and the pledged revenue stream has been relatively stable, even with rising gas prices.
Due to higher than forecasted collections from the special sales tax revenues pledged to the bonds and other revenues dedicated to ERB retirement, the bonds, which have a nominal final maturity of July 1, 2023, are now expected to be fully retired by January 1, 2010.
The 'BBB-' underlying rating reflects strong legal provisions including daily deposits of pledged revenues; stable operating performance of the gaming facility supported by its location on Interstate 5, the major connector between Canada and southern California; limited per capita distributions with a covenant not to reduce set-asides for bond holders; and political stability at the tribe.
This fund is pledged to the repayment of the notes.