As the name implies, the pledge business is to open your deposit into a certificate of deposit and then pledge it to others. Generally speaking, this pledge object is commonly known as the pledgee, that is, the bank. Moreover, in the process of business operation, it is more common in banks that issue certificates of deposit.
Legal basis: Civil Code of People's Republic of China (PRC).
Article 425 Where the debtor or a third party transfers his movable property to the creditor to guarantee the performance of the debt, and the debtor fails to perform the due debt or the creditor has the right to be paid in priority for the movable property. 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.
Article 427 To establish a pledge, the parties shall conclude a pledge contract in writing. A pledge contract generally includes the following clauses: (1) the type and amount of the secured creditor's rights; (2) The time limit for the debtor to perform the debt; (3) The name and quantity of the pledged property. (4) the scope of the guarantee; (5) Time and method of delivering pledged property.
Article 434 During the pledge period, if the pledgee transfers the pledged property without the consent of the pledger, thus causing damage or loss of the pledged property, it shall be liable for compensation.
Article 440 The following rights that the debtor or a third party has the right to dispose of may be pledged: (1) Bills of exchange, promissory notes and checks; (2) Bonds and certificates of deposit. (3) Warehouse receipts and bills of lading; (4) Transferable fund shares and equity; (5) Transferable intellectual property rights such as the exclusive right to use a registered trademark, patent right and copyright; (6) Existing and future accounts receivable; (7) Other property rights that can be pledged according to laws and administrative regulations.