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 Oregon Pledge of Personal Property as Collateral Security is an essential legal tool that enables individuals or businesses to secure a loan or debt obligation by offering their personal property as collateral. This pledge helps lenders mitigate the risk associated with lending funds, as it provides an additional guarantee of repayment in the event of default. The Oregon Revised Statutes (ORS) Chapter 78 governs the creation, perfection, and enforcement of the Oregon Pledge of Personal Property. It outlines the requirements and procedures that both borrowers and lenders must follow to establish a legally enforceable pledge. There are primarily two types of Oregon Pledge of Personal Property as Collateral Security: 1. Traditional Pledge: In a traditional pledge, the borrower transfers possession of the pledged personal property to the lender. The lender, in turn, holds the property until the debt is fully repaid. This type of pledge is commonly used for tangible assets such as vehicles, equipment, inventory, or valuable personal belongings. 2. Possessionless Pledge: Unlike the traditional pledge, a possessionless pledge is created when the pledged personal property remains in the borrower's possession. However, important steps must be taken to perfect the pledge, such as filing a financing statement with the Oregon Secretary of State's office. This type of pledge is commonly used for intangible assets like accounts receivable, intellectual property rights, or copyrights. To establish an Oregon Pledge of Personal Property as Collateral Security, several key elements need to be considered: 1. Pledge Agreement: A legally binding agreement is essential to define the terms of the pledge, including the identified personal property, the debt or obligation being secured, and the rights and obligations of both parties. 2. Perfection: Proper perfection is necessary to maintain priority over conflicting claims on the pledged property. This typically involves filing a financing statement with the Oregon Secretary of State's office or complying with specific requirements outlined in the Oregon Revised Statutes. 3. Default and Enforcement: The pledge agreement should outline the consequences of default, including the lender's rights to repossess and sell the pledged property to satisfy the debt. In case of non-compliance, lenders may initiate legal proceedings to recover their debts. It is crucial for borrowers and lenders to consult experienced legal professionals when preparing an Oregon Pledge of Personal Property as Collateral Security. Proper understanding and adherence to the applicable laws and regulations ensure a secure and enforceable pledge, protecting the interests of both parties involved.
