Legal Definitions - safe-pledge

A safe-pledge is a formal promise or undertaking to provide something as security for a debt or obligation. It is a bailment or deposit of personal property to a creditor as security for a debt or obligation. The item of personal property so deposited is also called a pledge.

For example, if you borrow money from a pawnshop, you may have to provide a valuable item such as jewelry or electronics as a safe-pledge. The pawnshop will hold onto the item until you repay the loan with interest. If you fail to repay the loan, the pawnshop can sell the item to recover the money you owe.

A safe-pledge is different from a mortgage or lien because it involves the transfer of possession of the property to the creditor. The creditor holds onto the property until the debt is repaid, whereas a mortgage or lien only gives the creditor a right to the property if the debt is not repaid.