Cap. 16 Art. 1968Where the thing pledged is a debt.

(1) Where the thing pledged is a debt, the pledgee shall be responsible for the collection of such debt on maturity, and shall place the moneys or other things received either as agreed or, failing such agreement, as the court may determine.

(2) If the debt secured by the pledge is due, the pledgee may retain, from any moneys received as aforesaid, an amount sufficient to satisfy his rights and shall deliver the remainder to the pledgor; and if the thing received is not money, he may proceed with the sale of the thing as provided in article 1970.

(3) The creditor of a debt secured by the pledge of another debt may, at any time after his debt becomes due, demand that the debt pledged in his favour be assigned to him in payment up to the amount of his debt.

(4) The debtor of a debt given in pledge may oppose to the creditor of the debt secured thereby all the pleas which he could have set up against his own creditor; but if such debtor has himself accepted without reservation the giving of the debt in pledge, he may not oppose to the creditor of the debt so secured any compensation that may have taken place before the giving of the pledge.