What is the legal term for a collateral agreement in which a debtor offers an asset to secure a loan?

The legal term for a collateral agreement in which a debtor offers an asset to secure a loan is a pledge. A pledge involves the borrower handing over an asset to the lender as security for the loan, with the understanding that if the borrower fails to repay, the lender has the right to sell the asset to recover the loan amount. This arrangement establishes a legal right to the pledged property, often allowing the lender to claim it if repayment terms are not met.

In contrast, a mortgage specifically refers to a type of debt secured by real estate, where the borrower retains possession of the property but grants the lender a security interest in it. Secure credit is not a standard legal term used to describe a collateral agreement, and an assignment typically involves transferring rights or interests in a contract or property rather than using an asset as collateral for a loan. Therefore, the definition of a pledge accurately captures the essence of this type of collateral agreement.