Chapter II: Pledging of tangible movable property

Where the settlor has the option of disposing of the pledged assets under the conditions provided for in Articles 2341 or 2342, the goods acquired in replacement are automatically included in the basis of the pledge.

The pledgor must reimburse the creditor or the agreed third party for useful or necessary expenses incurred by the latter for the preservation of the pledge.

Where the pledge is constituted with dispossession, the pledgor may claim the return of the pledged property, without prejudice to damages, if the creditor or the agreed third party fails to fulfil its obligation to preserve the pledge. Where the pledge is constituted without dispossession, the creditor may invoke the acceleration of the secured debt or seek an additional pledge if the pledgor fails to fulfil its obligation to preserve…

Unless otherwise agreed, where the holder of the pledged asset is the creditor of the secured debt, he shall receive the fruits of that asset and set them off against the interest or, failing that, against the principal of the debt.

If the secured debt is not paid, the creditor may pursue the sale of the pledged asset. This sale shall take place in accordance with the procedures set out in the Code of Civil Enforcement Procedures, without the pledge agreement being able to derogate therefrom. Where the pledge is constituted as security for a professional debt, the creditor may arrange for the public sale of the pledged property by a…

The creditor may also obtain a court order that the property shall remain in payment to him. Where the value of the property exceeds the amount of the secured debt, the sum equal to the difference shall be paid to the grantor or, if there are other pledgees, shall be consigned.

It may be agreed, at the time the pledge is created or subsequently, that if the secured obligation is not performed, the creditor will become the owner of the pledged asset. The value of the asset is determined on the day of the transfer by an expert appointed amicably or judicially, in the absence of an official quotation of the asset on a trading platform within the meaning of the…

The pledge is indivisible notwithstanding the divisibility of the debt between the heirs of the debtor or those of the creditor. The heir of the debtor who has paid his portion of the debt may not demand the return of his portion in the pledge until the debt is fully discharged. Conversely, the heir of the creditor, who has received his portion of the debt, may not surrender the pledge…

The sequestration or deposit of sums, effects or values, ordered by a court as a guarantee or as a precautionary measure, entails special allocation and preferential right within the meaning of Article 2333.