pledged asset

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Related to pledges: Pledge of Allegiance

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 ?
Registration of share pledges with the QCSD can take up to three business days.
The Gittlers have taken their America Recycles Day pledge to heart.
Alter the Promise: the STD consequences of adolescent virginity pledges.
Consequently, she concludes that health care providers should explicitly ask youth who have taken virginity pledges if they had had sex before taking the pledge, and programs that encourage virginity pledges should "ensure that pledgers know they bear the risks of previous sexual behaviors.