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Share Pledge Agreement Wikipedia

Some security interests can only be furthered through the actual holding of the asset. For example, the right to tax the sale of the asset depends on the holding of that asset after a common law instruction (or right of pledge): an agreement that leaves the debtor in possession of the mortgaged collateral does not create an enforceable security right. [5] Civil law countries generally allow the assumption of a commercial pledge of grouped movable assets held or acquired for the use of a business or activity generating income (Going Concern) and not for sale. The pool is limited to long-term (personal) movable assets of value to the company, or, in other words, although most collateral is created by an agreement between the parties, it is also possible that a warranty right may be created under the law. [4] For example, in many jurisdictions, a mechanic who repairs a car has a right to deposit the car for repair costs. This right of pledge is created by law if there is no agreement between the parties. In the UK, there is no limit to the amount of a client`s assets that can be seized[3] unless the client has negotiated an agreement with their broker with a limit or prohibition. In the United States, re-multiplication is limited to 140% of a customer`s balance. [4] [5] [6] Negative seizure is a provision of a contract that prohibits a party from creating security rights in certain assets covered by the provision. Securities lending is an important way to eliminate “aborted” trading and allow hedge funds and other investment vehicles to sell shares empty.

[3] When a borrower is late in a loan (due to bankruptcy or other event), that borrower loses the mortgaged real estate as collateral, with the lender becoming the owner of the property. In the case of a typical mortgage transaction, for example, the property acquired through the loan serves as collateral. If the buyer will not repay the loan under the mortgage agreement, the lender can use the legal enforcement procedure to obtain ownership of the property. If it is a second mortgage, the primary mortgage is repaid first with the remaining funds used to satisfy the second mortgage. [3] [4] A pawnshop is a frequent example of a business that can accept a multitude of items as collateral. The Scottish legislation of the United States is generally consistent with that of England with respect to the commitments made. The main difference is that in Scotland and Louisiana, a deposit can only be sold with the judicial authority. In some U.S. states, the common law, as it existed with the exception of the Factors Acts, is still followed, but in others, the factor has a more or less limited power to assign a title by instruction. [3] Pledge is the pignus of Roman law, from which derives most of modern European law on this subject, but which is generally a feature of even the most fundamental legal systems. It differs from the mortgage and the most common mortgage in that the mortgage debt is held by the pledge creditor. [3] However, the same applies to all three may apply to personal and real property.

The seizure of personal property is called pledge and that of real estate as antichrese. Under the SEC`s SHO regulation, short sellers must generally either own the shares they sell empty or have the right to obtain them to cover the short sale. It is also possible to replicate the effect of the guarantee by transferring the asset in full, with the provision that the asset will be transferred again after the repayment of the guaranteed liabilities. In some legal systems, these agreements may be referred to as the granting of a mortgage, but most jurisdictions allow the parties to the freedom to characterize their transactions at their discretion. [33] The most common examples are financing that uses an equity loan or a repurchase agreement to guarantee cash credit and ownership transfer agreements (e.g.B. in the “Transfer” Schedule of the English Credit Assistance Act to an ISDA Framework Agreement (unlike other forms of CSA that grant the guarantee)]. . .