The posting of assets for the purpose of securing the performance of or delivery on, an obligation by one party (the debtor/ obligor) towards another (the creditor/ secured party). For the creditor, a pledge creates a security interest (a lien) in the assets posted, while ownership of the assets rests with the debtor.
Pledge or pledging can be used to secure the fulfillment of a contract or the repayment of a debt, and is liable for forfeiture in the event of non-performance or failure to deliver on time or as per other contractual terms and conditions.
