§ 1. A pledge may be defined to be a deposit of personal property as security, with an implied power of sale upon default.' Lord Holt, who was the first to make a systematic statement. of the general law of bailment, defined a pawn to be that sort of bailment "when goods or chattels are delivered to another, to be a security to him for money borrowed of him by the bailor." Sir William Jones' defined it to be "a bailment of

1 An implied power of sale always accompanies a deposit of property in pledge, though there may also be an express power of sale. This implied power of sale is a feature which distinguishes a pledge from a lien; Pothonier v. Dawson, Holt N. P. 383; Doane v. Russell, 3 Gray (Mass.) 382; Jackson v. Kincaid, 4 Okla. 554, 561, 46 Pac. Rep. 587; First Nat. Bank v. Harkness, 42 W. Va. 156, 164, 24 S. E.

Rep. 548, quoting text; Thames Iron Works Co. v. Patent Derrick Co., 1 Johns. & H. 93; and though the usual definitions of a pledge do not allude to this characteristic, it seems that no definition is complete which does not include it.

2 Coggs v. Bernard, 2 Ld. Raym. 909, 913.

Bailments, 118.

goods by a debtcr to his creditor, to be kept by him till his debt is discharged." The definition given it by Judge Story' is, "a bailment of personal property as a security for some debt or engagement.

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In a few states there is a statutory definition of a pledge. Thus, in California, North Dakota, South Dakota* and Montana, a pledge is defined to be a deposit of personal property by way of security for the performance of another act. Every contract by which the possession of personal property is transferred as security only is to be deemed a pledge. In Georgia,' a pledge or pawn is declared to be property deposited with another as security for the payment of a debt. In Louisiana,* a pledge is declared to be a contract by which a debtor gives something to his creditor as a security for his debt.

The term "collateral security" has in recent years come into general use to designate a pledge of negotiable paper, corporate stocks, or other incorporeal personalty, as distinguished from a pledge of corporeal chattels. In a broad sense, "collateral security is one, side by side with, or in addition to, the first, or in addition to the debtor's own obligation;"" and in this sense might apply to a mortgage whether of real or personal property, or to a pledge of a chattel, or of a chose in action as well. But the customary use of the term to designate a pledge of incorporeal personal property seems now to be well established; and it is convenient to have a term to distinguish a pledge of such property from an ordinary pledge of chattels, because many rules of law applicable to the one

51 Codes 1895; Civ. Code, §§ 3890, anty its performance. By Webster, 3891.

6 First Nat. Bank v. Harkness, 42 W. Va. 156, 165, 24 S. E. Rep. 548, quoting text.

? Code 1895, § 2956.

8 R. Civil Code 1870, p. 373, art. 3133. Chambersburg Ins. Co. v. Smith,

as security for the performance of covenants, or the payment of money be sides the principal security. By Worcester, as security for the fulfillment of a contract, or a pecuniary obligation in addition to the principal security.