prenda

Prenda is a term used in Spanish-speaking contexts with two main meanings. In everyday language, prenda denotes a garment or piece of clothing. In civil law and finance, prenda refers to a pledge or security interest—an asset offered to guarantee a debt.

Etymology: The word derives from Latin prenda, meaning “pledge” or “something that is pledged.”

As clothing: In colloquial use, una prenda de vestir refers to any item of clothing, with examples including hats, coats, or shirts.

In law and finance: A prenda is a security interest on movable property. The debtor may transfer possession of the pledged asset to the creditor, or the parties may allow the debtor to retain possession while the security remains attached. Upon debtor default, the creditor may sell the pledged asset to recover the loan, subject to applicable procedures. Common forms include prenda mercantil (merchant pledge) and prenda sin desplazamiento de la posesión, where possession remains with the debtor. The concept is distinct from a mortgage (hipoteca), which covers immovable property.

Other uses: The term appears across Spain and Latin American legal regimes, with local rules determining how a prenda is perfected, enforced, and prioritized among creditors.

See also: pledge, security interest, collateral, hipoteca.