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 ?
Under Article 8 (1) of the Regulations, once the future pledged property comes into existence, is owned by the pledgor or transformed into movable property, the pledgor must submit an application to the Registry to amend the status of the pledged property recorded in the Registry from a future to a current one.
Collateral, such as personal property, may generally be found in the form of deposits (including investment accounts), securities (including stocks, bonds and the like either registered in the pledgor's name or possessed by pledgor) and account assets (including deposits).
In order "to insure that pledgors are aware that their security is imperiled," the FTC recommended that, "not later than 30 days prior to expiration of the redemption period, the trader-pledgee be required to serve upon his pledgor written notice containing a description of the item, a statement of interest, principal and amount due, and a warning of impending forfeiture." (42) Such a policy would help to prevent animosity between the traders and their Navajo customers.
Article 743 A pledge by either pledgor or pledgee of the original pledge to some third person is null and void, unless the permission of either the pledgor or pledgee has been obtained.
Effectively, the pledgor and the pledgee are not required to identify the specific assets that are subject to the pledge.
Clearly, the second requisite for a valid pledge-that the pledgor be the absolute owner of the property-is absent in this case.
Within the terms of each ACA, Citi's new solutions allow pledgors to instruct transactions on the collateral account and secured parties to monitor pledged collateral positions in a highly automated manner.
In order to enter into subsequent transactions over the DMCC Tradeflow evidencing a pledge over future Warrants (issued by the storage operator as and when additional goods are deposited), the pledgor (as the legal owner) is required to issue a new Security Notification to the DMCC on the DMCC Tradeflow in relation to the new Warrant(s) instructing the DMCC to hold the new Warrant(s) by way of pledge for the pledgee.
When submitting the share pledge to the QCSD, a joint letter from the pledgor and pledgee bank addressed to the QCSD should accompany the submission.
not permanently affixed to an immovable property) and the same can be perfected by signing a written pledge agreement and delivering the relevant property by the pledgor to the pledgee (either actual or constructive).
From the looks of it, after the announcements on pledges are made, the media releases are quietly filed away without a mechanism being put in place to monitor the compliance by the pledgors with their commitments.