Common use of Pledge Security Clause in Contracts

Pledge Security. If this will be a secured loan and the Lender will require that the Borrower provide collateral against the loan amount, then the “Pledge Security” statement should be selected. When marking the first checkbox in Section VII, the collateral the Borrower volunteers against the loan must be defined on the blank line labeled “Security.” For example, suppose the Borrower is listing his or her automobile as the security for the loan amount.