pledgee: meaning, definition, pronunciation and examples
C2Formal / Technical (Law, Finance)
Quick answer
What does “pledgee” mean?
The person who receives something as a pledge or security.
Audio
Pronunciation
Definition
Meaning and Definition
The person who receives something as a pledge or security; the lender in a secured transaction.
1. The party to whom personal property is pledged as security for a debt. 2. In finance, the entity holding a security or asset pledged by another (the pledgor). 3. In legal contexts, the beneficiary of a pledge agreement.
Dialectal Variation
British vs American Usage
Differences
No significant meaning difference. More common in written legal/financial documents in both varieties. The concept is identical.
Connotations
Neutral technical/legal term in both. No emotive connotation.
Frequency
Very low frequency in general usage, but standard and equally understood in legal/financial contexts in both the UK and US.
Grammar
How to Use “pledgee” in a Sentence
The [lender/bank] is the pledgee.[Pledgee] of the [shares/collateral].Rights granted to the pledgee.Vocabulary
Collocations
Usage
Meaning in Context
Business
Used in loan agreements, security documentation, and corporate finance to denote the party holding collateral.
Academic
Found in law and finance textbooks, journals discussing secured transactions and property law.
Everyday
Virtually never used in everyday conversation.
Technical
Core term in legal and financial terminology, specifically in the law of secured transactions, pawnbroking, and collateral management.
Watch out
Common Mistakes When Using “pledgee”
- Using 'pledgee' to mean the person who makes the pledge (this is the pledgor).
- Using it in non-legal contexts where 'lender' or 'creditor' would be clearer.
- Misspelling as 'pledgie' or 'pledger'.
FAQ
Frequently Asked Questions
Both are secured creditors. A pledgee typically takes possession of movable personal property (like jewellery, shares) as security. A mortgagee has a security interest in real property (land, buildings) without necessarily taking physical possession.
Almost never. It is a specialised legal and financial term. In everyday situations, you would say 'the bank' or 'the lender'.
The opposite is 'pledgor' (or 'pawnor' in a pawn context). This is the person who gives the property as security for a debt.
Yes, etymologically. The verb 'to pledge' (to give as security) gives us the agent noun 'pledgor' (the giver) and the recipient noun 'pledgee' (the receiver).
The person who receives something as a pledge or security.
Pledgee is usually formal / technical (law, finance) in register.
Pledgee: in British English it is pronounced /ˌpledʒˈiː/, and in American English it is pronounced /ˌpledʒˈiː/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think: 'EE' at the end often means 'the one who receives' (like payee, lessee). PLEDG-EE receives the pledge from the PLEDG-OR.
Conceptual Metaphor
SECURITY IS A HELD OBJECT (The pledgee is the holder/keeper of the security).
Practice
Quiz
Who is the pledgee in a standard pawn transaction?