pledge agreement

A pledge agreement is a legal document where a borrower promises to give a specific asset, like property or collateral, to a lender as security for a loan. If the borrower defaults or fails to meet the loan terms, the lender has the right to seize and sell the pledged asset to recover the owed money. It helps protect the lender's interest while allowing the borrower to obtain financing. The agreement outlines the assets involved, the borrower’s obligations, and the procedures in case of default.