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A pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties. The term is also used to denote the property which constitutes the security.

A life insurance policy can be pledged by the policyholder. It's an agreement between the policyholder, the creditor (bank) and the life insurance company, whereby the life insurance contract is used as guarantee in exchange for a financial loan.

If the company's cash flow is healthy enough to keep up the collateral value, pledged shares may not harm. But, if the cash flow is poor and promoters cannot maintain collateral value, the pledged shares may prove disastrous for the company's financial conditions.

Pledging of shares is a financial arrangement in which the promoters of a company pledge their shares as collateral to secure a loan or meet their financial requirements. Pledge in the stock market means taking a loan against its securities. This arrangement is typical for companies where investors hold many shares.

This is a matter of state law. In order to be enforceable, it generally must have consideration or detrimental reliance or public policy. The consideration need not be of equal value. For example, the charity may promise to name a building after the donor because of the pledge?that is sufficient consideration.

Donation Pledge Form Like pledge cards, pledge forms are filled out by donors with information about their intended pledge. However, forms include a space for payment information so that donors can begin giving immediately.