| name | pledge-agreement-securities |
| title | Pledge Agreement (Securities) |
| description | Drafts perfected-security-interest Pledge Agreements for securities collateral under UCC Article 9. Use when drafting securities pledge agreements, stock pledge documents, collateral assignments, or security interest grants in investment property securing loans or credit facilities. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/pledge-agreement-securities |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | finance |
| language | en |
| tags | ["agreement","drafting","transactional"] |
Pledge Agreement (Securities)
Grants a perfected security interest in certificated or uncertificated securities to secure a loan, credit facility, or other obligation. Covers collateral description, perfection mechanics, covenants, and UCC Art. 9 remedies.
Prerequisites
Collect before drafting:
- Credit documents — credit agreement or note (principal, rate, maturity)
- Party details — legal names, entity types, formation jurisdictions, addresses, signing authority
- Securities details — issuer, type (common/preferred/bonds), share count or principal amount, certificate numbers, CUSIPs, account numbers, intermediary info
- Existing encumbrances — prior liens, shareholder agreements, transfer restrictions, ROFR
- Related security package — guarantees, intercreditor agreements, other collateral docs
Document Structure
| Section | Key Contents |
|---|
| Title & Preamble | Execution date; full party identification; representative capacity if agent |
| Recitals | Reference underlying obligation; state principal/commitment; note pledge required under credit docs |
| Definitions | "Pledged Securities," "Secured Obligations" (all principal, interest, fees, indemnities, extensions, refinancings), "Collateral," "Event of Default" |
| Collateral Description | Per collateral checklist below |
| Grant of Security Interest | Continuing first-priority security interest in all Collateral to secure Secured Obligations |
| Perfection & Delivery | Method-specific mechanics per perfection table |
| Representations & Warranties | Per R&W checklist |
| Covenants | Affirmative + negative; voting/distribution rights; LTV/margin maintenance |
| Events of Default | Payment default; rep breach; covenant breach; cross-default; bankruptcy; material collateral value decline; delisting |
| Remedies | UCC Art. 9 disposition; commercially reasonable sale; proceeds waterfall; credit bidding; deficiency |
| Valuation & Substitution | Methodology; substitution conditions; simultaneous exchange |
| Release & Termination | Full release on payment; partial release at LTV thresholds; return certificates; file UCC-3s |
