Pledge agreement 2025

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This is a standard form of Pledge Agreement executed by a pledgor in favour of a single lender. It creates a security interest in securities and other investment property owned by the pledgor. This Standard Document has integrated notes with important explanations, drafting notes and negotiating tips.
The grantors are usually the borrower, its parent and its subsidiaries. The grantors typically enter into the pledge agreement with a collateral agent, which is acting on behalf of lenders under a syndicated loan agreement. This form can also be used for one lender.
The difference between a pledge and a surety lies in the form of the collateral. A pledge relates to intangible movable assets such as receivables, business assets or company shares, whereas a pledge relates to tangible movable assets such as stocks, equipment, vehicles or property.
Under the UCC, a pledge agreement is a security agreement. The nature of the pledged assets means that a pledge agreement may contain different representations and warranties and covenants than a security agreement over business assets (for example, voting rights).
The donor and the charity agree that the donor will make a contribution to the charity at some point in the future. However, the agreement does not become legally enforceable until the charity signifies its acceptance of the donors offer by taking actions or incurring liability in reliance on the donors pledge.
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An agreement typically used to create a security interest in equity interests (including capital stock, LLC interests, and partnership interests) and promissory notes.
A SECURITY AGREEMENT is an agreement that. creates or provides for an interest in personal property. that secures payment or performance of an obligation.

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