Pledge is a guarantee. Pledge is a way of guarantee, including mortgage, lien and deposit. Pledge means that the debtor or the third party pledges his property to the creditor for possession to guarantee the performance of the debt.

legal ground

Article 388 of the Civil Code

To establish a security interest, a security contract shall be concluded in accordance with the provisions of this Law and other laws. Guarantee contracts include mortgage contracts, pledge contracts and other contracts with guarantee functions. The guarantee contract is a subsidiary contract of the main creditor's rights and debts contract. If the principal creditor's rights and debts contract is invalid, the guarantee contract is invalid, unless otherwise stipulated by law.

Article 425

In order to guarantee the performance of the debt, if the debtor or a third party transfers his chattel to the creditor for possession, if the debtor fails to perform the due debt or realize the pledge according to the agreement of the parties, the creditor has the right to be paid in priority for the chattel.

The debtor or the third party specified in the preceding paragraph is the pledger, the creditor is the pledgee, and the delivered movable property is the pledged property.