Section 763.- The following actions cannot be entered later than six months after the return or sale by auction of the pledged property :

                (1) An action for compensation for damage caused to the pledged property by the pledgee ;

                (2) An action for reimbursement of expenses incurred for the preservation or maintenance of the pledged property ;

                (3) An action for compensation for injury caused to the pledgee by non-apparent defects in the pledged property.

 

CHAPTER III

ENFORCEMENT OF PLEDGE

 

Section 764.- On enforcement of the pledge the pledgee must first notify the debtor in writing to perform the obligation and accessories within a reasonable time to be fixed in the notice.

If the debtor fails to comply with the notice, the pledgee is entitled to sell the pledged property, but only by public auction.

The pledgee must notify the pledger in writing of the time and place of the auction.

 

Section 765.- If notification is impracticable, the pledgee may sell the pledged property by public auction after one month from the time the obligation became due.

 

Section 766.- The pledgee of a bill shall, without previous notification being necessary, collect it on the day of its maturity.

 

Section 767.- On enforcement of the pledge, the pledgee must appropriate the net proceeds to the extinction of the obligation and accessories and must return the surplus to the pledger or any person entitled to it.

If the proceeds are less than amount due, the debtor of the obligation remains liable for the difference.

 

Section 768.- If several properties are pledged as security for one obligation, the pledgee may sell such of them as he may select, but he may not sell more than is necessary for the satisfaction of his right.

 

CHAPTER IV

EXTINCTION OF PLEDGE

 

Section 769.- A pledge is extinguished :

                (1) When the obligation secured is extinguished otherwise than by prescription ; or          

                (2) When the pledgee allows the pledged property to return into the possession of the pledger.