Section 245.- The holder of a right of retention may take the fruits of the property retained and appropriate them to the performance of the obligation in preference to other creditors.

Such fruits must first be appropriated to the interest on the obligation, and if there is any surplus, that must be appropriated to the principal.

 

Section 246.- The holder of a right of retention is bound to take such appropriate care of the property retained as might be expected from him in his situation.

The holder of aright of retention cannot use or let the property retained or give it as security, without the consent of the debtor ; but this does not apply to such use as is necessary for the preservation of the property.

If the holder of a right of retention acts contrary to any provision of the foregoing paragraphs, the debtor may claim the extinction of the right.

 

Section 247.- If the holder of a right of retention incurs necessary expenses in respect to the property retained, he may acquire the owner to reimburse him.

 

Section 248.- Subject to the provisions of Section 193/27, the exercise of a right of retention does not prevent the running of prescription against the obligation.

 

Section 249.- The debtor may claim the extinction of the right of retention on giving proper security.

 

Section 250.- A right of retention is extinguished by the loss of possession of the property ; but this does not apply to the case where the property retained is let or pledged with the consent of the debtor.

 

PART VI

PREFERENTIAL RIGHTS

 

Section 251.- A holder of a preferential right has, according to the provisions of this Code or other laws, a right as to the property of his debtor to receive therefrom performance of an obligation due to him in preference to other creditors.

 

Section 252.- The provisions of Section 244 are applied correspondingly to preferential rights.

 

(1.) General Preferential Rights

 

Section 253.- A person in whose favour an obligation exists based upon any following grounds has a preferential right in the whole property of the debtor :

                (1) Expenses for the common benefit ;

                (2) Funeral expenses ;

                (3) Taxes and duties, and money to which an employee is entitled for the services rendered to the debtor who is his employer ;

                (4) Supplies of daily necessaries.