Article II. On Pledge

938. • Pledge is a contract by which a debtor gives a movable thing to the creditor for insurance of the credit. - Under the name of pledge also comes the thing pledged.

Rules of pledge. - I. On the part of the debtor handing over the pledge. He ought 1. to hand over to the creditor a suitable pledge; 2. to refund to the creditor necessary expenses which shall have been made for the conservation of the thing; 3. not to reclaim the pledge before he has paid the entire debt, unless the creditor abuses it.

II. On the part of the creditor receiving the pledge. He ought 1. not to use the thing entrusted to him except by the consent of the debtor; 2. diligently to guard the pledge; otherwise he is bound concerning damage; 3. to compute fruits received from the pledge toward the diminution of the debt, namely for preserving equality; 4. not to sell the pledge by his own authority for obtaining payment, unless the debtor is in culpable delay and has first been warned. Thus by natural and positive law.

To pledge approaches the contract which is called antichresis. But antichresis is a species of pledge by which the debtor hands over an immovable thing for the use of the creditor until the debt is paid. - St. Lig. n. 916. ¹. - See Cases, n. 1010.

¹ St. Alphonsus, or rather Busembaum (for St. Alphonsus brings forward the mere text of this man on this matter), immediately adds this resolution: This contract, according to Cajetan, Soto, etc. (against certain jurists), seems to be usurious, because the creditor gains something beyond the capital by reason of the mutuum alone, which is usury. But St. Alphonsus adds in a little note within parenthesis (Book 3, n. 916): And it is certain with Palao apud Croix, n. 1115. Nevertheless (ibid.) he holds as ratified the things which Busembaum then adds (Resol. 2): Yet just titles of gaining fruits from the pledge without diminution of the capital can intervene; as if, for example, the fruits received from the hypothec do not surpass the quantity of the pension which by right of census constituted on the same thing can be exacted with a pact of restoration, as was said above concerning censuses: or if otherwise profit ceases, or damage emerges, while the debt is deferred. Whence they are not easily to be condemned who from Princes, in place of debts, have fields, pastures, offices, etc., in antichresis. See Laym. and Binfeld, On Usuries, Mol., etc., Lessius cap. 137. To these can also be added those things which above, where treating of mutuum, were said concerning profit from credited money received short of injustice.

| | | | --- | --- | | FIRST PART. - On laws in general. 77 | Art. I. On the force of obligation. 91 | | Chap. I. On the nature and properties of law. » | Art. II. On the manner of satisfying the obligation of law. 93 | | Chap. II. On the author of law, or on the legislator. 79 | Art. III. On causes excusing from law. 96 | | Chap. III. On the object and subject of law. 83 | § I. On the nature of those things which deobligate. » | | Art. I. On the object of law. » | § II. On the voluntary placing of deobligating causes. 97 | | Art. II. On the subject of law. 84 | Chap. VI. On interpretation of law and epikeia. 99 | | Chap. IV. On promulgation and acceptance of law. 88 | § I. On interpretation of law. » | | Art. I. On promulgation of law. » | § II. On epikeia. 100 | | Art. II. On acceptance of law. 89 | Chap. VII. On dispensation of law. » | | Chap. V. On the obligation of law. 91 | |

| | | | --- | --- | | FIRST PART. - On contracts in general. 623 | § III. On the civilly dead. 647 | | Chap. I. On the requisites for contracting. 625 | § IV. On the interdicted and prodigals. » | | Art. I. On the matter of a contract. » | Art. III. On the required consent. » | | Art. II. On the subject of a contract. 637 | § I. On the endowments of legitimate consent. » | | § I. On minors. 642 | § II. On vices opposed to consent. 649 | | § II. On wives. 645 | |