Pledge (Lien)

Definition

A proprietary security right in a thing or right that enables the creditor to obtain satisfaction from the pledged object.

Detailed Explanation

The pledge serves to secure claims. It can arise contractually, by law, or through judicial seizure. If the secured obligation is not fulfilled, the creditor can realize the pledge. Real estate liens such as mortgages and land charges are of particular importance in real estate law.

Related Terms