Glossary

19.
11
2019.

Pledge right (mortgage)

a) Pledge debtor

Pledge debtor is responsible for the debt with the property he has voluntarily pledged. If you are co-debtor, you are responsible for all due debts as well as the main debtor and you may be requested to meet these obligations in full. In contrast, the pledge debtor, who is neither a guarantor nor a co-debtor, in such a situation, risks to lose only the property he has voluntarily pledged as collateral for the main debtor’s obligation.

b) Pledge creditor

Pledge creditor is entitled to exercise his right to settle a claim from the value of the pledge (property), if the claim secured by the pledge is not met by maturity.

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