Business - Debt finance Flashcards
(1 cards)
1
Q
What is a pledge?
A
A form of possessory security which involves the lender having physical possession of the charged asset.
An example is pawnbroking where you hand an asset over to the pawnbroker, who holds on to it until the debt is repaid - or after a certain period of time, if the debt is not repaid, has the right to sell it.
