pledge

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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 ?
Of the life insurers with pledged assets, most were 5 percent or lower of all assets, although 14 companies were in the red category and had pledged assets of 25 percent or more of total assets while 16 life insurance companies had pledged assets of between 10 percent and 25 percent.
A taxpayer is generally at risk and, thus, has at-risk basis in an activity to the extent of money or property contributed, amounts borrowed for use in the activity or to acquire an interest in the activity (to the extent the taxpayer is personally liable for repayment or has pledged assets for security), and the net income has been allocated to the taxpayer, but has not been distributed.
They do not have to constantly mark to market the prices of Treasury bills and other pledged assets, which makes investing easier and less time-consuming.
Under government regulation, IBRA maintains authority to assume financial control, if not outright ownership, over virtually all of the companies with loans or pledged assets in the agency's portfolio.
During composition, the business continues to operate but secured creditors are allowed to attach the pledged assets, which is usually harmful to the recovery of the business.
The PASR, an asset-to-liability ratio, is calculated by dividing the amount of aggregate pledged assets, including scheduled obligor repayments, reserve funds and account earnings, by aggregate outstanding debt service.
Lenders would be able to determine easily that assets are unencumbered and in the event of default, rapidly foreclose on the pledged assets, thereby reducing their risks of loss.
465, the taxpayer includes the amounts borrowed in determining at-risk basis to the extent he or she is personally liable for repayment or has pledged assets not used in the activity as security for them.
The At-Risk rules limit the loss deduction to the amount of the taxpayer's cash contribution and the adjusted basis of other property contributed to the activity, plus amounts borrowed for use in the activity if the taxpayer is personally liable for the amount borrowed or has pledged assets not used in the activity as security for the borrowing.
The enhanced rating, meanwhile, reflects the security provided by the bonds' pledged assets, RAM Ratings noted.