Plc and Pledge: Difference between pages
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imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Expand. Source: Global supply chain finance forum.) |
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An item transferred by a borrower to a lender, as a security for a debt. | |||
The borrower remains the legal owner of the item, but if the borrower fails to repay the loan the lender has the right to sell it and to use the proceeds to pay the debt. | |||
The lender normally retains physical possession of the asset until the debt is repaid. | |||
== See also == | == See also == | ||
* [[ | * [[Fixed charge]] | ||
* [[ | * [[Lien]] | ||
* [[ | * [[Mortgage]] | ||
*[[ | * [[Remedy]] | ||
* [[ | * [[Garnishee order]] | ||
* [[ | * [[Covered bond]] | ||
Revision as of 13:26, 20 June 2016
An item transferred by a borrower to a lender, as a security for a debt.
The borrower remains the legal owner of the item, but if the borrower fails to repay the loan the lender has the right to sell it and to use the proceeds to pay the debt.
The lender normally retains physical possession of the asset until the debt is repaid.
