Pledges of accounts receivable are normally made on a nonnotification basis, meaning that a customer whose account has been pledged as collateral is not notified.

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Pledges of accounts receivable are often made on a nonnotification basis, which means that the customer whose account has been pledged as collateral is not notified. This is done to avoid disrupting the customer's relationship with the company and to minimize the risk of the customer defaulting on their payments.

Pledges of Accounts Receivable Are Normally Made on a Nonnotification