Pledgee

Part of speech: noun

Definitions

1. A recipient who accepts a pledge to secure a promise is designated as this type of individual, often relating to financial agreements while holding collateral until obligations are met
2. This term refers to a person who is entrusted with an asset or collateral that ensures the execution of a commitment, typically within a legal or financial framework
3. An individual who receives an asset or collateral as assurance for a commitment, usually within a legal or financial context, is known by this term

Etymology: "Pledgee" is the person on the receiving end of a pledge: the one who holds goods or property given as security for a debt until it is repaid. It is built from "pledge" with the suffix "-ee," which in English marks the recipient of an action, as in "employee" or "payee," so a pledgee is the party to whom the pledge is made. The suffix does the same job here as it does in those words. Where "pledgor" names the person who gives the pledge, "pledgee" names the one who takes it, so the pair describes the two sides of a single transaction. The base word "pledge" itself has a long history in English, but the formation of "pledgee" is a straightforward combination of that noun with a suffix already well established in legal and commercial vocabulary.

Synonyms: borrower, debtor, guarantor, mortgagor, pledger