Division 3 Pledge of Securities

§ 314. Definition of pledge of securities

Securities may be pledged such that the person for whose benefit the pledge is established has the right to demand satisfaction of a claim out of the pledged securities.

§ 315. Application of provisions concerning possessory pledge

The provisions concerning possessory pledge apply to a pledge of securities unless otherwise provided by law.

§ 316. Establishment of pledge on securities

(1)

A pledge of bearer securities is created upon delivery of the securities to the pledgee.

(2)

A pledge of other securities is created upon delivery of the securities on the basis of a written pledge contract or endorsement.

§ 317. Pledge of documents of title

(1)

By pledging securities which grant rights in particular goods (document of title), the goods are also pledged.

(2)

If in addition to a document of title there is a special pledge instrument (warrant) and if the document of title has a notation concerning the pledge which indicates the amount of debt and due date of the claim, the pledge of the warrant is sufficient for establishment of a pledge on the goods.

§ 318. Representation of pledged shares

Pledged shares do not grant the pledgee the right to participate in a general meeting as a shareholder. This right is retained by the shareholder.

§ 319. Performance of claim upon pledge of registered securities and bearer securities

If bearer securities, bills of exchange or other securities which may be transferred by endorsement are pledged, the pledgee has the right to submit a claim arising from the specified securities regardless of the due date of the claim. The debtor shall perform the obligation of the securities to the pledgee.

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