The problem of deposit pledge

Margin pledge means that the borrower deposits money in a special account opened in a bank and promises to use the money in the account as a guarantee to repay the loan. When the borrower fails to repay the debt, the lending bank has the right to directly deduct the deposit from the special deposit account to use it as a guarantee for repaying the loan.

Legal Basis

Article 425 of the "Civil Code" To guarantee the performance of a debt, if the debtor or a third party pledges his movables to the creditor for possession, the debtor shall not perform the obligation. When debts become due or the situation agreed by the parties to realize the pledge occurs, the creditor has the right to receive priority payment for the movable property. The debtor or third party specified in the preceding paragraph shall be the pledger, the creditor shall be the pledgee, and the movable property delivered shall be the pledged property.