PIGNORATION Meaning and
Definition
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Pignoration is a legal term that refers to the act of using personal property or belongings as collateral for a loan or debt. It is a form of pledge or security arrangement whereby the borrower offers an item or items of value to the lender as a guarantee for repayment of the debt. These pledged assets, known as pignus, are held by the lender until the debt is fully repaid.
The process of pignoration typically involves the creation of a legal contract or agreement, detailing the terms and conditions of the loan. The agreement specifies the items being pledged, their value, and the duration of the loan. It also outlines the consequences of default, such as the lender's right to sell the pledged assets to recover the unpaid debt.
Pignoration has been a common practice in various legal systems throughout history. It provides a means for borrowers to access credit by offering a form of security to lenders. The assets pledged can range from physical possessions like jewelry or vehicles to financial instruments such as bonds or stocks.
The concept of pignoration is closely related to the broader field of secured transactions, which governs the creation and enforcement of security interests in personal property. It offers protection to lenders by reducing the risk of default and providing a source of recovery in case of non-payment. Similarly, borrowers benefit from the ability to obtain loans on favorable terms using their assets as collateral.
Common Misspellings for PIGNORATION
- oignoration
- lignoration
- -ignoration
- 0ignoration
- pugnoration
- pjgnoration
- pkgnoration
- pognoration
- p9gnoration
- p8gnoration
- pifnoration
- pivnoration
- pibnoration
- pihnoration
- piynoration
- pitnoration
- pigboration
- pigmoration
- pigjoration
- pighoration
Etymology of PIGNORATION
The word pignoration derives from the Latin term pignoratio, which itself is derived from the verb pignorare meaning to pledge or to hypothecate. The verb pignorare is a derivative of the noun pignus meaning pledge or collateral.
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