Pledge Agreement
Definition
A Pledge Agreement is a legal document in which a borrower pledges certain assets as collateral to secure a loan, giving the lender rights to the collateral in the event of default.
Benefits
A pledge agreement uses assets as collateral to secure a loan, ensuring the lender`s interest is protected.
Frequently Asked Questions
What is a pledge agreement? A pledge agreement is a legal document where a borrower pledges assets as collateral for a loan.
What is a pledge as collateral? A pledge as collateral is using assets to secure a loan, giving the lender rights to the assets in case of default.
What is meant by pledge in banking? In banking, a pledge refers to using assets as collateral to secure a loan.
Summary
Pledge Agreement uses assets as collateral to secure a loan.