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 ?
The fundamental promise made by the pledgor in the collateral agreement is to identify and maintain collateral for the benefit of the intended beneficiary--collateral that is at all times viable and reachable by the beneficiary per the terms of the agreement.
an act of anticipatory breach by pledgor or customer;
an assignment by either pledgor or customer for the benefit of creditors or indication of bankruptcy, reorganization, or liquidation; and/or
Furthermore, the surplus amount had to be returned to the pledgor in US currency and not other items of "equal value" from the store.
Whereas previously customers had to present their pawn ticket in order to redeem an item, this was no longer the case: "Redemption may not be denied on the sole ground that the pledgor is unable to produce a receipt or pawn ticket, provided the pledgor gives a reasonable description of the pawned item or makes an actual identification of the item.
In the event of a pledge of the original pledge being made by the pledgor to some third person with the permission of the pledgee, the second pledge stands in the place of the first pledge, which becomes null and void.
Neither the pledgor nor the pledgee may sell the pledge without the consent of the other.
Accordingly, the storage operator may have priority in the insolvency of the pledgor for unpaid rentals and other charges for the storage of goods in their vault.
9-207(c)(3) places a burden on pledgors to negotiate a
The ALTA Form 16 Endorsement also includes a "non-imputation" provision whereby the title insurance company agrees that it will not refuse to pay a claim to the mezzanine lender because of any fact previously known to any of the pledgors of the Equity Interests.
Without this endorsement, any knowledge of the pledgors of the Equity Interests would have been imputed to the mezzanine lender, thereby depriving the mezzanine lender from making a claim for liability arising from title defects relating to the previously known matter.