Security and Pledge – Pledge as a security agreement under the Uniform Commercial Code

Security and Pledge – Pledge as a security agreement under the Uniform Commercial Code

Art. 3143. Pledge of property susceptible to encumbrance by security interest. A contract by which a person purports to pledge a thing that is susceptible of encumbrance by security interest does not create a pledge under this title but may be effective to create a security interest in the thing.