pledged asset

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Pledged Asset

An asset that a borrower transfers to the possession of a lender as collateral for a loan. The borrower maintains ownership and all associated rights of the pledged asset. When the loan is repaid, the lender transfers possession back to the borrower. The pledged asset reduces the risk to the lender that the borrower will default, therefore possibly qualifying the borrower for some benefit, such as a lower interest rate. When buying a house, some mortgage borrowers will pledge an asset, such as stock, to the lender to qualify for a lower down payment. See also: Secured loan.

pledged asset

An asset used as security for a loan.
References in periodicals archive ?
Additionally, Ford's credit rating was returned to investment grade by the second of three major credit agencies in May, allowing for the return of the company's pledged assets, including the Blue Oval.
After the $580 million threshold is reached, the Company is required to pay 50% of realized proceeds from dispositions of pledged assets and annual excess cash flow, which is reduced to 25% when the outstanding balance of the new secured debt is less than $950 million.
MicroCredit Enterprises is backed by a growing network of Guarantors with a current total of $37 million in pledged assets.
In addition, the program's coverage requirement, which allows pledged assets to be released from the MTI, is 1.
Hybrid financing generally requires a combination of personal liability and/or pledged assets to collateralize the loan.
Pledged assets must be in the form of cash, stocks (publicly traded), bonds or mutual funds.
The pledged assets consist of district facilities under a master lease.
In addition, the company has sold assets, pledged assets and borrowed money on an unsecured basis to raise approximately $4 billion in liquidity, but despite this, "Northwest's cash balance as of year end 2005 had dropped to $1.
Clients do not incur an interest rate premium or private mortgage insurance requirement since the pledged assets are made in lieu of a large downpayment.
The CTA also permitted the securing of future indebtedness with the Pledged Assets.
The bonds are secured by pledged assets including gross receipts, a first mortgage lien, and a debt service reserve fund.
Private water enterprises currently account for 2% of current pledged loans, all secured by system revenues, with additional pledged assets in some cases.