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 ?
On the same date, DSFK wrote to TAG regarding EGG's default and subsequent failure to repay the loans and informed TAG that it would take all measures to collect the debts, including but not limited to court collateral collection on the pledged assets.
The bonds are secured by the pledged assets of the obligated group (OG), including its gross receipts and unrestricted funds, and by a first mortgage lien on community's property and equipment (Glebe property is not included in the mortgage).
600 crores have since been made through the sale of pledged assets and a further Rs.
The policy initiative has set minimum portfolio targets for banks; introduced risk coverage and refinancing schemes for SMEs; established g a registry to allow SME borrowers to obtain credit using pledged assets as collateral; and prudential incentives such as a relaxation of general provisioning and capital requirements.
The book balance of the principal is RMB 72,370,000, the interest is RMB 138,037,700, and the total credit balance including principal and interest is RMB 210,407,700, and there is no effective guarantee or pledged assets to secure this debt.
The pledged assets remain with the insurer and are potentially available in the event of an insolvency.
Financial flexibility has also been improved by the release of all previously pledged assets.
Meantime, conditions imposed on pledged assets do have impact on the adoption of the Islamic pawnshop.
Auxiga provides a complete range of services for each phase of pledge financing, from the setup of the security agreement to the day-to-day monitoring of the pledged assets. The company is headquartered in Paris and employs 91 staff.
One of the main problems associated with pledged assets is the risk of impairment loss that carries related risks.
A secured creditor is one to whom a borrower has pledged assets, such as equipment or real estate, as a security.