pledge

(redirected from pledgers)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.

Pledge

A Bailment or delivery of Personal Property to a creditor as security for a debt or for the performance of an act.

Sometimes called bailment, pledges are a form of security to assure that a person will repay a debt or perform an act under contract. In a pledge one person temporarily gives possession of property to another party. Pledges are typically used in securing loans, pawning property for cash, and guaranteeing that contracted work will be done. Every pledge has three parts: two separate parties, a debt or obligation, and a contract of pledge. The law of pledges is quite old, but in contemporary U.S. law it is governed in most states by the provisions for Secured Transactions in article 9 of the Uniform Commercial Code.

Pledges are different from sales. In a sale both possession and ownership of property are permanently transferred to the buyer. In a pledge only possession passes to a second party. The first party retains ownership of the property in question, while the second party takes possession of the property until the terms of the contract are satisfied. The second party must also have a lien—or legal claim—upon the property in question. If the terms are not met, the second party can sell the property to satisfy the debt. Any excess profit from the sale must be paid to the debtor, or first party. But if the sale does not meet the amount of the debt, legal action may be necessary.

A contract of pledge specifies what is owed, the property that shall be used as a pledge, and conditions for satisfying the debt or obligation. In a simple example, John asks to borrow $500 from Mary. Mary decides first that John will have to pledge his stereo as security that he will repay the debt by a specific time. In law John is called the pledgor, and Mary the pledgee. The stereo is referred to as pledged property. As in any common pledge contract, possession of the pledged property is transferred to the pledgee. At the same time, however, ownership (or title) of the pledged property remains with the pledgor. John gives the stereo to Mary, but he still legally owns it. If John repays the debt under the contractual agreement, Mary must return the stereo. But if he fails to pay, she can sell it to satisfy his debt.

Pledged property must be in the possession of a pledgee. This can be accomplished in one of two ways. The property can be in the pledgee's actual possession, meaning physical possession (for example, Mary keeps John's stereo at her house). Otherwise, it can be in the constructive possession of the pledgee, meaning that the pledgee has some control over the property, which typically occurs when actual possession is impossible. For example, a pledgee has constructive possession of the contents of a pledgor's safety deposit box at a bank when the pledgor gives the pledgee the only keys to the box.

In pledges both parties have certain rights and liabilities. The contract of pledge represents only one set of these: the terms under which the debt or obligation will be fulfilled and the pledged property returned. On the one hand, the pledgor's rights extend to the safekeeping and protection of his property while it is in possession of the pledgee. The property cannot be used without permission unless use is necessary for its preservation, such as exercising a live animal. Unauthorized use of the property is called conversion and may make the pledgee liable for damages; thus, Mary should not use John's stereo while in possession of it.

For the pledgee, on the other hand, there is more than the duty to care for the pledgor's property. The pledgee has the right to the possession and control of any income accruing during the period of the pledge, unless an agreement to the contrary exists. This income reduces the amount of the debt, and the pledgor must account for it to the pledgee. Additionally, the pledgee is entitled to be reimbursed for expenses incurred in retaining, caring for, and protecting the property. Finally, the pledgee need not remain a party to the contract of pledge indefinitely. She can sell or assign her interest under the contract of the pledge to a third party. However, the pledgee must notify the pledgor that the contract of pledge has been sold or reassigned; otherwise, she is guilty of conversion.

pledge

v. to deposit personal property as security for a personal loan of money. If the loan is not repaid when due, the personal property pledged shall be forfeit to the lender. The property is known as collateral. To pledge is the same as to pawn. 2) to promise to do something. (See: pawn)

pledge

a security transaction applicable to chattels under which the borrower (pledgor) gives possession of the chattel to the lender (the pledgee) as security for the payment of a debt or performance of an obligation. The pledgee is entitled to hold the chattel until payment or performance and, upon failure duly to pay or perform at the proper time, to sell it. Until any such sale, however, the pledgor remains entitled to redeem it by payment or performance. The same arrangement applies in Scots law in relation to moveables. It is known to the public through the pawn shop where the public may go to obtain a loan by depositing their personal possessions which may be sold if not redeemed.

PLEDGE, contracts. He who becomes security for another, and, in this sense, every one who becomes bail for another is a pledge. 4 Inst. 180 Com. Dig. B. See Pledges.

References in periodicals archive ?
a comparison of the sexual behavior of virginity pledgers and matched nonpledgers, Pediatrics, 2009, 123(1):el 10-e120.
Consistent and inconsistent pledgers delayed their time to first coitus by several years, compared with nonpledgers.
About 80% of those studied never reported taking a virginity pledge, 13% said they had pledged but in a later 5-year followup said they had not (they were counted as inconsistent pledgers in the study), leaving only 7% of "consistent pledgers," who reported at least once that they had pledged and never said otherwise.
Yet there's been little growth in the number of FSP pledgers since New Hampshire was chosen last year.
The e-Donate application enables the capture and processing of a donation quickly from the pledger's bank.
According to researchers Peter Bearman and Hannah Brueckner, who tracked those pledgers who had intercourse during the study period, "the estimated odds for contraceptive use for pledgers are about one-third lower than for others." The researchers noted that "pledgers are less likely to be prepared for an experience that they have promised to forego." They also found that "pledging does not work for adolescents at all ages" and that the efficacy of the pledge in some schools depended on its being uncommon: "Once the pledge becomes normative, it ceases to have an effect." Thus "policy makers should recognize that the pledge works because not everyone is pledging."
(Dues are based on revenue.) And the Boston-based Coalition for Environmentally Responsible Economies (www.ceres.org), which has labor unions, investors, foundations and public pension funds as members, is best-known for the CERES Principles, which commit pledgers to ongoing environmental awareness and accountability.
Lenders know some pledges will not be honored and the lack of a definite plan to collect from delinquent pledgers could reflect negatively on a nonprofit's managers.
"But we need the ongoing support of all of our pledgers during this next phase more than ever.
Skaka, Rabi'II 06, 1436, January 26, 2015, SPA -- Prince Fahd bin Badr bin Abdulaziz, Governor of Jouf region received here yesterday condolers on the death of late Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud and pledgers of allegiance to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, Crown Prince Muqrin bin Abdulaziz Al Saud, the Deputy Premier, and Deputy Crown Prince Mohammed bin Naif bin Abdulaziz, Second Deputy Premier and Minister of Interior.
Pledge Music is an online direct-to-fan / fan-funded music platform, launched in August 2009, that helps musicians reach out to their fan-base (termed pledgers) to pay towards upcoming recordings or other musical projects.
(1) Three-fourths of both pledgers and nonpledgers had had intercourse by the five-year follow-up, and the mean age at first sex for both groups was 21.