Section 754.- If the pledged right becomes due before the obligation for which it is security is due, the debtor of such right must deliver to the pledgee the property which is the subject of the right and it becomes pledged in lieu of the pledged right.

If the pledged right is an obligation to pay a sum of money and becomes due before the obligation secured, the payment must be made jointly to the pledgee and the pledger ; if they cannot come to an agreement, each of them is entitled to demand that sum be deposited in Deposit Office for their common benefit.

 

Section 755.- If a right is pledged, it cannot be extinguished or modified to the injury of the pledgee without the consent of the pledgee.

 

Section 756.- Before the obligation is due, any agreement that the pledgee shall, in case of non-performance, become the owner of the pledged property or dispose of it otherwise than in accordance with the provisions concerning Enforcement of Pledge, shall be invalid.

 

Section 757.- The provisions of this Title 13 apply to contracts of pledge entered into with licensed pawnbrokers only in so far as they are not contrary to the Laws and Regulations concerning Pawnbrokers.

 

CHAPTER II

RIGHTS AND DUTIES OF PLEDGER AND PLEDGEE

 

Section 758.- The pledger is entitled to retain all the pledged property until he has received full performance of the obligation and accessories.

 

Section 759.- The pledgee is bound to keep the pledged property in safe custody and take as much care of it as a person of ordinary prudence would take care of his own property.

 

Section 760.- If, without the consent of the pledger, the pledgee uses the pledged property or lets a third person have the use or custody of it, he is liable for any loss or damage to the pledged property, even caused by force majeure, unless he proves that the loss or damage would have happened in any case.

 

Section 761.- Unless otherwise provided by the contract, if the pledged property produces legal fruits, the pledgee shall appropriate them in payment of any interest that may be due to him, and, if no interest is due, in payment of the principal of the obligation secured.

 

Section 762.- The pledger is bound to reimburse the pledgee for any expenses which were necessary for the preservation or maintenance of the pledged property unless otherwise provided in the contract.