Pledge of Personal Property as Collateral Security

Pledge of Personal Property as Collateral Security. When you are working with a customer who will be using personal property as collateral security on your property you will need this sample letter.

Just be sure to have them read over it carefully and sign off before continuing business.

Discussing the specifics and liabilities verbally is great.

But, in order for it to be final and hold up in court should any problems occur, you must have everything down on paper, along with the signature of both parties.

Use this detailed letter as is, or revise certain parts to fit your needs!

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PLEDGE OF PERSONAL PROPERTY

FOR VALUE RECEIVED, the undersigned hereby deposits and pledges with _, [Pledgee] as collateral security to secure the payment of:

[Describe debt]

     _______________________________________________

     _______________________________________________

  

The following personal property [collateral] described as:

       _________________________________________________

       ___________________________________________________

  

It is understood and agreed that:

     1. Pledgee may assign or transfer said debt and the pledged collateral           hereunder.

     2. Pledgee shall have no liability for loss, destruction or casualty to the          collateral unless caused by his own negligence.

     3. The undersigned shall pay any and all insurance it elects to maintain          on the pledged collateral and any personal property, excise or other          tax or levy.

     4. The undersigned warrants that it has good title to the pledged                  collateral, authority to pledge same and that it is free of any                    adverse lien, encumbrance or claim.

     5. In the event of default of payment of the debt or breach of this               pledge agreement, the Pledgee or holder shall have full rights to               foreclose on the pledged collateral and exercise its rights as a                 secured party pursuant to Article 9 of the Uniform Commercial Code;         said rights being cumulative with any other rights the Pledgee may           have against the undersigned.

 

Signed under seal this ___ day of ________, 19__.

 

   ______________________________

 

Related Pages
Notice to Prior Secured Party of Purchase Money Security Interest
Discharge of Security Interest Form
Promissory Note Installment with Acceleration Clause

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Notice of Claim of Lien Form
Rental Letter of Reference

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