A commercial pledge contract is an agreement secured on the basis of non clearance of debt. It is centred on transference of assets which have to be delivered to the debtor if the borrower fails to reimburse the security interest that the former is entitled to. Hence, it must be drawn significantly with legal assistance and made precise.
Sample Commercial Pledge Contract
Commercial pledge contract number: PC920000
This commercial pledge contract is recorded and executed among the debtor, Mr. Gregory Halloween, the borrower (also the pledge holder), Mr Joseph Mail, and the lender (also the pawnbroker), Mr. Olive Barn, on 7th January, 2011 wherein the following terms and conditions stand rigidly applicable and preside over the parties involved and whoever enters into the contract.
- The three parties reside at the given addresses respectively:
1. Debtor: 6, Joker Street, UK
2. Borrower: 78, Stock Avenue, Brussels, UK
3. Lender: 4B, Style Island, UK
- The debtor has granted a security interest to the lender as warranty against the indebtedness.
- The borrower agrees to pay the security interest against the loan.
- The borrower makes a pledge to hand over his asset, presently owned, to the lender under the Collateral.
- The secured asset associated with the ownership interest of the debtor includes a Ford Fiesta car [Licence number- NY47362]
- If the security interest is not paid within 5th January, 2012, the asset will be seized by the lender and the ownership rights will get automatically transferred.
Signature of debtor: Gregory Halloween
Signature of lender: Olive Barn
Signature of borrower: Joseph Mail