Restricted Securities
For affiliates with restricted stock, this form of recourse financing allows them to access capital in a private transaction without having to sell their securities to market.  As with Free Trading Securities, there are no credit checks, credit reporting or background checks associated with the transaction. 

With this form of pledge, they get liquidity from their asset now, retain contractual ownership and voting rights, enjoy the tax benefits that come from not having to sell their securities and profit from appreciation of their assets should the stock price rise in value as the loan matures......  after principle and interest are paid.