Respuesta :
Saf-T Lenders, Inc., action to take possesion of Tiara's stock to perfect Saf-T's security interest in stock is a form of a pledge asset transaction.
Plegde asset is an asset a borrower owns that serves as collateral for a loan. Pledge asset might include real estate, equipment, investment account, stock ownership, and more. By having a pledge asset, lenders can seize it if the loan is not paid in full by the borrower.
Pledge asset is used to secure a debt or loan and typicall required to reduce both the down payment for a loan and the interest rate charged. The asset used as a pledge asset should provide a better interest rate or repayment terms for the loan.
After transfer a pledge asset, a borrower still maintains ownership of the asset. The borrower also has right to continuously earn interest or capital gain from the asset. By transfering pledge asset, the borrower can avoid tax penalties or capital gains taxes from selling the asset.
However, the pladge security might have limited ability to trade if the investment are stocks or mutual funds. The borrower is also at risk of losing both the pledge asset and the loan in the event of default. If the pledge asset value is declined along the time, the lender may demand for any additional funds. Pledgung assets carries default risk since there is no control over the borrower's repayment.
Learn more about Pledge Asset here: https://brainly.com/question/29738886
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