Pledging

(redirected from pledge)
Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia.
Related to pledge: Pledge of Allegiance

Pledging

Hypothecate

To pledge an asset as collateral on a loan without the lender taking possession of the collateral. It especially applies to mortgages: the borrower hypothecates when he/she pledges the house as collateral for payment of the mortgage, or he/she may hypothecate the mortgage in order to borrow against the value of the house. In both situations the borrower retains the house, but the lender has the right to take possession if the borrower does not service the debt. Hypothecation also occurs in trading: a broker will allow an investor to borrow money to purchase securities with those securities as collateral. The investor owns the securities but the broker may take them if the debt is not serviced, or if the value of the securities falls below a certain level. See also: Foreclosure, Margin account.

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.
References in periodicals archive ?
Briefly, creation of a pledge over shares consists of a three-step process: registration of the pledgee bank by the QCSD, authentication of the share pledge and registration of the share pledge agreement.
The Giving Pledge is an effort to invite the wealthiest individuals and families in the United States to commit to giving the majority of their wealth to philanthropy, according to the official website.
Virginity pledges among the willing: delays in first intercourse and consistency of condom use, Journal of Adolescent Health, 2008 (forthcoming).
In 2005, Americans filled out pledge cards at more than 900 America Recycles events nationwide and through the America Recycles Web site that were entered into the grand prize drawing.
Maloof, TC Memo 2005-75, the court considered whether an S corporation shareholder's personal guarantee, pledge of stock or loss of control resulted in an economic outlay entitling him to increase his basis.
District Judge Lawrence Karlton ruled that school sponsorship of the Pledge violates students' right to be "free from a coercive requirement to affirm God.
The judge granted legal standing to two families represented by an atheist who lost his previous pledge case before the Supreme Court, and ruled that the pledge's reference to one nation ``under God'' violates their children's right to be ``free from a coercive requirement to affirm God.
The reason for this paradox may have been that most of those who took the pledges did not stay with them, and then skipped precautions because they were reluctant to be seen as breaking their public pledge.
The pledge is applicable to any individual, community, or company working on or using software that meets the Open Source Initiative (OSI) definition of open source software now or in the future.
2028, the "Pledge Protection Act of 2003," which would strip the federal courts of jurisdiction over cases involving the Pledge of Allegiance.
ITEM: On September 23, the Associated Press reported that "the House passed legislation [today] that would prevent the Supreme Court from ruling on whether the words 'under God' should be stricken from the Pledge of Allegiance.
With passion and precision, he argued his own case for why the daily recitation of the Pledge of Allegiance in his daughter's public-school classroom violates the Constitution as long as the pledge contains the words "under God.