Subsections
§ 281. Definition of possessory pledge
A movable may be encumbered with a pledge such that the pledged thing is transferred into the possession of the pledgee (possessory pledge).
§ 282. Creation of possessory pledge
- (1)
- A possessory pledge is created by transfer of possession of a thing from the pledgor to the pledgee if they have agreed on the establishment of the pledge. If the thing is already in the possession of the pledgee, a pledge is created by entering into a pledge contract.
- (2)
- An agreement for establishment of a pledge (possessory pledge contract) shall be entered into in writing if the value of the pledged thing exceeds five hundred kroons.
- (3)
- Several possessory pledges shall not be established on the same movable.
§ 283. Possessory pledge on several things
- (1)
- Upon establishment of a possessory pledge on several things, the entire claim is secured by each thing.
- (2)
- A pledgee may claim payment for the pledged thing at the pledgee's discretion unless otherwise provided by the pledge contract.
§ 284. Extinguishment of possessory pledge by termination of claim
A possessory pledge extinguishes by termination of the secured claim.
§ 285. Extinguishment of possessory pledge by destruction of movable
- (1)
- A possessory pledge extinguishes by destruction of the pledged movable.
- (2)
- If a pledged thing was insured, the pledgee has the right to take possession of the insurance proceeds in the case of complete or partial destruction of the thing. Insurance proceeds shall be deposited on the demand of the pledgor.
§ 286. Other bases for extinguishment of possessory pledge
A possessory pledge extinguishes if:
- 1)
- one and the same person becomes the pledgee and the owner of the pledged thing;
- 2)
- the pledged thing is no longer in the possession of the pledgee and the pledgee cannot reclaim the thing;
- 3)
- the pledgee returns the pledged thing to the pledgor or notifies the pledgor of discharge of the pledge.
§ 287. Obligations of pledgee upon safe-keeping of pledged thing
- (1)
-
A pledgee is required to:
- 1)
- preserve and maintain the pledged thing;
- 2)
- notify promptly the pledgor of a danger of destruction of the thing;
- 3)
- compensate the pledgor for damage caused to the pledged thing by the fault of the pledgee.
- (2)
- The expenses for preservation and maintenance of a pledged thing shall be borne by the pledgor unless otherwise provided by the pledge contract.
- (3)
- If the pledgee violates the obligations in safe-keeping the pledged thing, the pledgor has the right to satisfy the claim and demand return of the pledged thing.
§ 288. Right of pledgee to use pledged thing
- (1)
- A pledgee does not have the right to use a pledged thing unless otherwise provided by the pledge contract.
- (2)
- A pledgee who uses a pledged thing is required to report on it to the pledgor pursuant to procedure provided by the pledge contract.
- (3)
- The income received from use of a pledged thing shall be calculated to cover expenses, interest and the debt unless otherwise provided by the contract.
§ 289. Transfer of possessory pledge together with claim
- (1)
- Upon transfer of a claim to a new creditor, a possessory pledge also transfers to the new creditor and the new creditor has the right to claim the pledged thing from the pledgee.
- (2)
- By taking possession of a pledged thing, the rights and obligations of the current pledgee transfer to the new pledgee.
- (3)
- If upon transfer of a claim it is agreed that a possessory pledge will not transfer, the possessory pledge extinguishes.
- (4)
- A possessory pledge shall not transfer without a claim.
- (5)
- A pledgor may only transfer a pledged thing together with the debt.
§ 290. Return of pledged thing
Upon extinguishment of a possessory pledge, the pledgee is required to return the pledged thing to the pledgor.
§ 291. Transfer of claim to pledgor
If a debt is paid by the pledgor who is not the debtor, the claim transfers to the pledgor to the extent that the claim is satisfied. In this case, the provisions concerning surety apply.
§ 292. Creation of right of sale for pledgee
- (1)
- Satisfaction of a claim of a pledgee is effected by sale of the pledged thing.
- (2)
- The right to sell a pledged thing is created for the pledgee if a claim secured by the pledge is not satisfied according to the claim.
- (3)
- An agreement whereby the pledgee acquires the pledged thing for satisfaction of a claim secured by the pledge is invalid.
§ 293. Notification of sale
A pledgee is required to notify the pledgor of the sale of the pledged thing one month in advance. Advance notice may be given after creation of the right of sale.
§ 294. Sale of pledged thing
- (1)
- A pledged thing is sold by public auction.
- (2)
- The time and place of the public auction shall be made known to the pledgor and third persons who have rights in the pledged thing.
- (3)
- The pledgee and the pledgor may also participate in the public auction. If the thing is sold to the pledgee, the monetary value of the pledgee's claim shall be set off against the selling price.
- (4)
- The pledgee and the pledgor may agree to sell the pledged thing in a manner different from that specified in subsection (1) of this section. If a third person has a right in the pledged thing which extinguishes upon sale of the thing, the consent of the third person is required to change the manner of sale.
- (5)
- A pledgee who violates an agreement regarding the manner of sale of the pledged thing is liable for damage arising therefrom.
§ 295. Money received from sale of pledged thing
- (1)
- The obligation of a pledgor shall be deemed performed to the extent of the money received from a sale of the pledged thing from which the necessary sale expenses have been deducted.
- (2)
- The money remaining after payment of the sale expenses and satisfaction of the claim of the pledgee shall be returned to the pledgor.
§ 296. Pledging in pawn shop
The pledge of movables in a pawn shop is effected pursuant to the provisions concerning possessory pledge unless otherwise provided by law.
|
