pledge

A bailment, pawn, or deposit of personal property to a creditor as security for some debt or engagement. Personal property transferred to pledgee as security for pledger's payment of debt or other obligation. Jacobs v. Great Pacific Century Corp., 204 N.J.Super. 605, 499 A.2d 1023, 1025.

A pledge, considered as a transaction, is a bailment or delivery of goods or property by way of security for a debt or engagement, or as security for the performance of an act. Another definition is that a pledge is a security interest in a chattel or in an intangible represented by an indispensable instrument (such as formal, written evidence of an interest in an intangible so representing the intangible that the enjoyment, transfer, or enforcement of the intangible depends upon possession of the instrument), the interest being created by a bailment for the purpose of securing the payment of a debt or the performance of some other duty. A pledge is a promise or agreement by which one binds himself to do or forbear something. A lien created by delivery of personal property by owner to another, upon express or implied agreement that it shall be retained as security for existing or future debt. Arco Petroleum Products Co., a Div. of Atlantic Richfield Co. v. R & D Automotive, Inc., 74 Ill.Dec. 197, 200, 118 Ill.App.3d 634, 455 N.E.2d 227, 230.

Much of the law of pledges has been replaced by the provisions for secured transactions in Article 9 of the U.C.C.

See also bailment

- collateral

- hypothecate

- pawn

- secured transaction

- Security

Compare assignment