Warning
Info
Warning
Info
Simple English definitions for legal terms
safe-pledge
Read a random definition: contract implied in law
A quick definition of safe-pledge:
A safe-pledge is a formal promise or undertaking to provide something as security for a debt or obligation. It is like borrowing money from someone and giving them something valuable as a guarantee that you will pay them back. This valuable thing is called a pledge. It can be anything like jewelry, a car, or a house. If you don't pay back the money, the person who lent you the money can keep the pledge as payment. Safe-pledges have been used for a very long time and are still used today.
A more thorough explanation:
A safe-pledge is a formal promise or undertaking to provide something as security for a debt or obligation. It is a bailment or deposit of personal property to a creditor as security for a debt or obligation. The item of personal property so deposited is also called a pledge.
For example, if you borrow money from a pawnshop, you may have to provide a valuable item such as jewelry or electronics as a safe-pledge. The pawnshop will hold onto the item until you repay the loan with interest. If you fail to repay the loan, the pawnshop can sell the item to recover the money you owe.
A safe-pledge is different from a mortgage or lien because it involves the transfer of possession of the property to the creditor. The creditor holds onto the property until the debt is repaid, whereas a mortgage or lien only gives the creditor a right to the property if the debt is not repaid.