Under Article 9 of the UCC, a pledge is:
A)the delivery of personal property to a creditor or to a third party acting for the creditor as security for the payment of a debt.
B)a requirement that the secured party and the debtor agree to certain collateral.
C)an equipment transfer before a forced sale.
D)a form of indispensable paper.

Question

Quizplus · Accepted Answer

A pledge is the delivery of personal property to a creditor or a third party acting on behalf of the creditor to serve as security for the payment of a debt. This allows the creditor to take possession of the collateral and sell it to recover the outstanding debt in the event of the borrower's default.

Under Article 9 of the UCC, a Pledge Is