1. A promise.
2. A type of security interest in which a lender takes possession of personal property as security for an obligation. The personal property involved is also called a pledge. Initially, the lender's possessory interest is subject to the rules of a bailment or other type of deposit. If the borrower fails to perform as agreed, the lender may sell the personal property and keep the proceeds.
Definition from Nolo’s Plain-English Law Dictionary
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. (See also: pawn
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:21 pm