Sample Pledge Agreement Form

Category:
State:
Multi-State
Control #:
US-0194-WG
Format:
Word
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Description

The Sample Pledge Agreement Form serves as a detailed legal document between a college, its fiscal agent, and a bank regarding the issuance of revenue bonds to fund various projects. Key features of this form include the granting of a security interest in the pledged bonds, representations and warranties by the college, and covenants to maintain the security and lien status of the bonds. Specific use cases include financing for capital projects in educational institutions, refinancing existing debts, and providing a structured repayment method for bondholders. For attorneys, this form provides a framework for ensuring compliance with relevant laws and securing interests. For partners and owners, it facilitates funding for expansion projects while managing liabilities. Associates, paralegals, and legal assistants will find the form useful for drafting, reviewing, and understanding financing agreements, as it outlines critical terms and conditions for stakeholders. The form includes sections on default remedies, indemnification, and continuance of the security interest, making it comprehensive for various legal scenarios.
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FAQ

An agreement typically used to create a security interest in equity interests (including capital stock, LLC interests, and partnership interests) and promissory notes.

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.

For collateral consisting of equity interests and promissory notes, the lender may prefer to take a security interest in this collateral through a pledge agreement. A pledge agreement is just another name for a security agreement which creates a security interest in equity interests and promissory notes.

A pledge agreement must be in writing. The same formalities as for a mortgage agreement apply. Pledge must be certified as a deed before a notary public. The same formalities as for a mortgage agreement apply.

(a) The Pledgor is the legal and beneficial owner of, and has good and marketable title to, the Pledged Collateral. (b) No financing statement or other evidence of lien covering or purporting to cover any of the Collateral is on file in any public office. 13.3 Pledged Collateral.

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Sample Pledge Agreement Form