Page:United States Statutes at Large Volume 47 Part 1.djvu/1328

 1304 Compare section 1372. Post, p.1333. Lienor's action for damages, see section 1618. Real owner can not defeat pledge of prop- SEC. 1372. REAL OWNER CAN NOT DEFEAT PLEDGE OF PROPERTY TRANS- erty tran sfer red to BP- FERRED TO APPARENT OWNER FOR THE PURPOSE OF PLEDGE.-One who has parent owner. allo wed an other to as sume the ap paren t owne rship of pr opert y for the purpose of making any transfer of it, can not set up his own title, to defeat a pledge of the property, made by the other, to a pledgee who received the property in good faith, in the ordinary course of business, and for value. Pledge lender. SEC. 1373 . PLEDGE LENDER, WHAT .-Property may be pledged as security for the obligation of another person than the owner, and in so doing the owner has all the rights op a pledgor for himself, except as hereinafter stated. Pledge holder. SEC. 1374. PLEDGE HO LDER, WHAT .-A pledgor and pledgee may agree upon a third person with whom to deposit the property pledged, who,,~ WHEN he accepts the deposit, is called a pledge holder. When pledge lender SEC. 1375. YY HEN PLEDGE LENDER MAY WITHDRAW PROPERTY PLEDGED .- may withdraw prop- erty. One who pledges property as security for the obligation of another can not withdraw the property pledged otherwise than as a pledgor for himself might, and if he receives from the debtor a consideration for the pledge he can not withdraw it without his consent. Obligations of p led ge SEC. 1376 . OBLIGATIONS OF PLEDGE HOLDER .-A pledge holder for holder' reward can not exonerate himself from his undertaking ; and a grat uito us pl edge hold er ca n do so o n l y b y giving reasonable notice to the pledgor and pledgee to appoint a new pledge holder, and in case of their failure to agree, by depositing the property pledged with some impartial person, who will then be entitled to a reason- able compensation for his care of th e same. Pledge holder must SEC. 1377 . PLEDGE HOLDER MUST ENFORCE RIGHTS OF PLEDGES.-A enfor cengh tsofp ledge e. Obligation of pledgees, etc ., for re- 11 72d C ONGRESS. SESS. II. CH. 128 . FEB RUA RY 27, 1933 . CROSS REFEEENCE Increase of property pledged, see section 1370. When contr act SEC. 1368. WHEN CONTRACT IS TO BE DEEMED A PLEDGE .-Every con- deeme d a pledg e. tract by which the possession of personal property is transferred, as security only, is to be deemed a pledge. Delivery essential. SEC. 1369. DELIVERY ESSENTIAL TO VALIDITY OF PLEDGE .-The lien of a pledge is dependent on possession, and no pledge is valid until the property pledged is delivered to the pledgee, or to a pledge holder, as hereinafter prescribed. Increase of property. SEC. 1370. INCREASE OF THING.-The increase of property pledged is pledged with the propert y. Lienor may ple dge SEC. 1371. LIENOR MAY PLEDGE PROPERTY TO EXTENT OF HIS LIEN .- property to extent of lien. One who has a lien upon property may pledge it to the extent of his lien. Cro ss REFERENCES pledge holder must enforce all the rights of the pledgee, unless authorized by him to waive them. SEC. 1378 . OBLIGATION OF PLEDGEE AND PLEDGE HOLDER, FOR REWARD .-A pledgee, ora pledge holder for reward, assumes the duties and liabilities of a depositary for reward. CROSS REFERENCE Ante, p. 1229 . Depositary for reward, see section 725. Gr atuitou s pledg e bolder. SEC. 1379. GRATUITOUS PLEDGE HOLDER .-A gratuitous pledge holder assu mes the duti es a nd l iabil itie s of a gratuitous depositary.