Morals of the Church
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point — Wouters, Manual of Moral Theology

Point II. On Pledge

964.

I. Notion. Pledge is a contract by which a debtor delivers a movable thing1 to the creditor as security of his debt. The creditor is called the pledge-holder, and the thing itself handed over is also called the pledge (St. Alphonsus, III, 913).

1 If a pledge is constituted on an immovable thing, it is called antichresis.

Suretyship, Pledge and HypothecPledge (Pawn)

965.

II. Form. The form of the contract is to be drawn from civil law.

Pledge (Pawn)

966.

III. Rights of the pledge-holder, or creditor. The pledge-holder can retain the pledge until the debtor has paid; and if he is unequal to paying all debts, he has the right that payment be made to him from the thing pledged before the other creditors, according to what is to be said in n. 1012. But he is bound to keep the thing pledged safe and sound.

Pledge (Pawn)

967.

IV. Obligations of the debtor. The debtor is bound to compensate the pledge-holder for expenses necessary for the preservation of the thing, and likewise useful expenses made with the debtor's consent.

Note. To this belong contracts by which a certain sum of money is lent to one who, for example, has given merchandise or public bonds in pledge.

Pledge (Pawn)