Cap. 16 Art. 1966Effects of pledge.

(1) A pledge confers upon the creditor the right to obtain payment out of the thing pledged with privilege over other creditors as provided in Title XXIII.

(2) The said privilege exists over the thing pledged only if such thing or the document relating to it has been delivered or placed in custody as provided in article 1965 and only so long as such thing or document remains in the possession of the creditor or of the third party selected by the parties or in the custody of both parties as aforesaid.

(3) Where the thing pledged is a debt or other right in respect of which there is no such document as is referred to in article 1965, the said privilege shall not arise unless the pledge results from a public deed or a private writing, and either notice of the pledge has been given by a judicial act served on the debtor of the debt or other right or such debtor has in writing acknowledged the pledge.

(4) Where such debt or other right results from a document, the person giving the pledge shall, except where the document is a public deed, be bound to deliver the document to the creditor.