Definition of pledging Sample Clauses

Definition of pledging. Pledging means that a pledgor offers his assets to a lender in security for repayment of a loan. If the debtor does not repay his/her loan as agreed, the lender may recover the amount of the debt outstanding under the pledge. An itemised pledge applies to one or several debts specified in the pledge agreement. The agreement on a general pledge does not specify for what debts the pledge secures. The pledge secures all present and future principal debts of the debtor. The debtor may take out new loans and the pledge will also secure them.
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Related to Definition of pledging

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