Actual or constructive delivery of possession of an asset to a creditor by way of Security which, unlike a Lien, entitles the creditor to sell the asset in the Event of Default by the Pledgor. In practice, assets susceptible to a pledge are goods and documentary intangibles (eg Bills of Lading, Bills of Exchange, Promissory Notes). Like a Lien, a pledge is a form of possessory Security.

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