As the pledge is for the benefit of both parties, the pledgee is bound to exercise only ordinary care over the pledge. The pledgee has the right of selling the pledge if the pledgor make default in payment at the stipulated time. In the case of a wrongful sale by a pledgee, the pledgor cannot recover the value of the pledge without a tender of the amount due.
The Pennsylvania Pledge of Personal Property as Collateral Security is a legal concept that allows individuals or businesses to use their personal property as security for a loan or debt. This arrangement essentially grants a creditor a security interest in the pledged property in case of default. Under Pennsylvania law, there are different types of pledges of personal property as collateral security. These include: 1. Traditional Pledge: This type of pledge involves the borrower transferring ownership of the personal property to the lender as security for the loan. If the borrower fails to repay the loan, the lender has the right to sell the pledged property to recover the outstanding debt. 2. Chattel Mortgage: This is another form of Pennsylvania pledge of personal property as collateral security. It involves the borrower granting the lender a security interest in the personal property while retaining ownership. If the borrower defaults, the lender can seize and sell the mortgaged property to satisfy the debt. 3. Conditional Sales Contract: In this type of pledge, the borrower retains possession of the personal property but gives the lender a security interest. The lender has the right to repossess the property if the borrower defaults. However, ownership of the property is transferred to the borrower only after the debt is fully paid. 4. Security Agreement: This type of pledge establishes a security interest in personal property without transferring ownership. The borrower grants the lender the right to repossess and sell the property if the borrower defaults. Pennsylvania's law requires that a pledge of personal property as collateral security must be in writing and signed by both parties involved. The agreement should clearly identify the pledged property, the amount of debt or loan secured, and the terms of repayment. It is important to note that the Pennsylvania Pledge of Personal Property as Collateral Security operates under the provisions of the Uniform Commercial Code (UCC), which sets out the rights and responsibilities of both parties involved in such agreements.
