Pledge Legal Meaning and Definition

Here is a simplified definition of the legal term Pledge.

Pledge (verb, noun)

• As a verb: The action of providing something valuable, like property or goods, as security for a debt or obligation. If the debt isn't repaid by the agreed date, the creditor has the right to take the pledged object.

• As a noun: The item or asset offered as the guarantee for the repayment of a loan, often called 'collateral'. Failure to repay the loan may result in the loss of the pledged item to the lender.