pledged asset
Definition
Asset used as collateral for a loan. A pledged asset is transferred to the lender from the borrower to secure the debt. Ownership of the asset remains with the borrower during the loan period. When the debt has been repaid, the pledged asset is transferred back to the borrower. The lender assumes ownership of the loan if the borrower defaults on the loan.
Related Articles
- Introduction to Futures and Futures Trading *
- Basic Mutual Fund Concepts *
- Understanding Asset Allocation While Building a Portfolio *
- Equity Derivatives *
- Introduction to the Economy, Fiscal and Monetary Policy *
- What is a Savings and Loan Association? *
- What is a Sole Proprietorship? *
- Securing Financing for the Purchase of your Car *
Related Videos
http://www.businessdictionary.com/definition/pledged-asset.html
