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Legal Definitions - pawn
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Definition of pawn
Definition: When you give something valuable to someone as security for a loan, it is called pawning. Usually, people pawn their jewelry or other valuable items to pawnbrokers to get a small loan.
Examples:
- She pawned her diamond ring to get some money for her rent.
- He had to pawn his watch to pay for his medical bills.
These examples illustrate how people use their valuable items as collateral to get a loan. They deposit their personal property with the pawnbroker, who holds it until the loan is repaid. If the loan is not repaid, the pawnbroker can sell the item to recover the money.
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Simple Definition
Term: Pawn
Definition: When you need money but don't want to sell your things, you can give them to a pawnbroker as a guarantee that you will pay back the money you borrowed. This is called pawning. Usually, people pawn jewelry or other valuable things. If you don't pay back the money, the pawnbroker can keep your things.
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