Page:United States Statutes at Large Volume 76A.djvu/328

–232– -232§ 4207. Rights of owner pledging to secure obligation of another person Property may be pledged as security for the obligation of a person other than the owner, and in so doing the owner has all the rights of a pledgor for himself, except as hereafter stated in this chapter. § 4208. Deposit of pledged property with third person as pledge holder A pledgor and pledgee may agree upon a third person with whom to deposit the property pledged, who, if he accepts the deposit, is called a pledge holder. § 4209. Withdrawal of pledged property by pledge lender One who pledges property as security for the obligation of another may 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 cannot withdraw it without his consent. § 4210. Obligations of pledge holder A pledge holder for reward may not exonerate himself from his undertaking; and a gratuitous pledge holder may do so only by 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 an impartial person, who will then be entitled to a reasonable compensation for his care of it. § 4211. Enforcement of pledgee's rights by pledge holder A pledge holder shall enforce all the rights of the pledgee, unless authorized by him to waive them. § 4212. Obligation of pledgee and pledge holder for reward A pledgee, or a pledge holder for reward, assumes the duties and liabilities of a depositary for reward. § 4213. Gratuitous pledge holder A gratuitous pledge holder assumes the duties and liabilities of a gratuitous depositary. § 4214. Debtor's misrepresentation of value of pledge Where a debtor has obtained credit, or an extension of time, by a fraudulent misrepresentation of the value of property pledged by or for him, the creditor may demand a further pledge to correspond with the value represented; and in default thereof may recover his debt immediately, though it be not actually due. § 4215. When pledgee may sell When performance of the act for which a pledge is given is due, in whole or in part, the pledgee may collect what is due to him by a sale of property pledged, subject to the rules and exceptions hereinafter prescribed. § 4216. Demand for performance as condition precedent to sale Before property pledged can be sold, and after performance of the act for which it is security is due, the pledgee shall demand performance thereof from the debtor, if the debtor can be found. § 4217. Notice of sale to pledgor A pledgee shall give actual notice to the pledgor of the time and place at which the property pledged will be sold, at such a reasonable time before the sale as will enable the pledgor to attend. § 4218. Waiver of notice of sale Notice of sale may be waived by a pledgor at any time; but is not waived by a mere waiver of demand of performance.

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