For the contract to be valid, it is necessary that: the pledge is constituted to secure the fulfillment of a principal obligation; the pledgor
be the absolute owner of the thing pledged; and the person constituting the pledge has the free disposal of his property, and in the absence thereof, that he be legally authorized for the purpose.
If the pledgor
fails to pay the debt secured when due, the pledgee has the right to enforce the pledge.
956, the partnership will be considered a pledgor
or guarantor of the obligation and therefore will be treated as holding that obligation.
The parties may remain the same, but their obligations vary and so too do their referenced names: the distributor is referred to by its own name, the customer is referred to as the obligor and the guarantor is referred to as the pledgor
Section 120 of the CC Act conferred on the pledgee an express right to sell the goods after the time allowed to the pledgor
to redeem had expired.
For tri-party account control arrangements, Citi will act as an intermediary between the pledgor
and the secured party, holding pledged collateral in a segregated custody account.
If a bracelet had a retail value of six dollars, the pledgor
could extract a loan up to but not exceeding that amount.
418) Or the acceptance, by a stockholder as pledgor
, of an offer
Changes were also made to avoid situations where pledgor
and collateral issuer belong to the same sector and for that reason experience financial problems simultaneously.
may, therefore, denounce such contract before delivery of the pledge.
2d 609 (Iowa 1974) (indicating that a pledgee's attempt to establish a college collapsed when a charitable pledgor
refused to effectuate his pledge); Congregation B'nai Sholom v.