Veðsett

Veðsett is an Icelandic term used as the past participle of the verb veðsetja, meaning to pledge property or other assets as security for a loan. When an asset is veðsett, it carries a lien or mortgage that the lender can claim if the borrower fails to repay. The concept is common in legal, financial, and real estate contexts. A veðsett asset remains encumbered by the mortgage or pledge until the debt is satisfied; upon default, the creditor may enforce the lien, potentially through foreclosure or sale of the asset.

Veðsetning is the related noun for the act or arrangement of pledging an asset as collateral. The term can apply to real property as well as movable property or receivables, depending on the agreement and applicable law. In everyday language one might refer to a "veðsett eign" to indicate that an asset has been pledged as security.

Etymology: Veðsett derives from veðsetja, formed from veð (pledge, security) and setja (to set/place). The past participle veðsett is used across grammatical genders and numbers to describe a thing that has been pledged as collateral.

See also: veðsetning, veð, mortgage-related terms in Icelandic law.