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 ?
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.
Secured Debt, Encumbered Assets Rise: Anton's secured debt and pledged assets rose substantially over 2016.
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.
For further details of the pledged assets included in the pools, please access the virtual data rooms.
Meantime, conditions imposed on pledged assets do have impact on the adoption of the Islamic pawnshop.
We further call on the Secretary-General to ensure that the UN, in particular the Departments of Management, Field Support and Peacekeeping Operations, has the systems in place to deploy, absorb and sustain these newly pledged assets rapidly and in accordance with the specific needs of individual missions, including in such areas as airlift, rapid engineering support, force headquarters and police and civilian recruitment -- "We encourage the Secretary-General to continue to take steps to strengthen the accountability of senior leaders for mainstreaming gender and improving gender balance in their respective missions and departments and welcome the introduction of gender targets as performance indicators in all compacts with senior managers at United Nations headquarters and in the field.
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.
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.
In addition, Northern Trust will continue to invest in operational capabilities in support of margin management to help clients optimize their pledged assets.