PLEDGE is a contract by virtue of which the debtor delivers to the

creditor or to a third person a movable or document evidencing

incorporeal rights for the purpose of securing the fulfillment of a
principal obligation with the understanding that when the obligation
is fulfilled, the thing delivered shall be returned with all its fruits and
accessions. (Art.2085 in rel to 2093)

RIGHTS AND DUTIES OF CREDITOR IN A PLEDGE

1. Shall take care of the thing pledged with the diligence of a good
father of a family (2099).
2. Has right to reimbursement of the expenses made for preserving
the thing. Shall be liable for loss or deterioration of the thing by
reason of fraud, negligence, delay or violation of the terms of the
contract, but not for fortuitous events (2099).
3. May bring actions pertaining to the owner of the thing in order to
recover it from, or defend it against, a 3rd person (2103).
4. Cannot use the thing without the authority of the owner. If he uses
the thing without authority, or if he misuses the thing when he was
authorized to use it, the owner may ask that it be judicially or
extrajudicially deposited (2104).
5. May use the thing if necessary for its preservation (2104). 6. May
either claim another thing in pledge or demand immediate payment
of the principal obligation if he is deceived on the substance or
quality of the thing (2109).

THE PLEDGEE
1. Cannot deposit the thing pledged with a 3rd person, unless there
is a contrary stipulation (2100).
2. Is responsible for the acts of his agents or employees with respect
to the thing pledged (2100).
3. Has no right to use the thing or to appropriate its fruits without
authority from the owner (2104)
4. May cause the public sale of the thing pledged if, without fault on
his part, there is danger of destruction, impairment or dimunition in
value of the thing. The proceeds of the auction shall be a security for
the principal obligation (2108).

RIGHTS AND DUTIES OF THE PLEDGOR

1. Takes responsibility for the flaws of the thing pledged (2101 in
relation to Art. 1951).
2. Cannot ask for the return of the thing against the will of the
creditor, unless and until he has paid the debt and its interest, with
expenses in proper cases (2105).
3. Subject to the right of the pledge under article 2108, pledgor is
allowed to substitute the thing which is in danger of destruction or
impairment without any fault on the part of the pledgee with another
thing of the same kind and quality (2107). 4. May require that the
thing be deposited with a 3rd person, if through the negligence or
willful act of the pledgee the thing is in danger of being lost or
impaired (2106).

MORTGAGE is a contract whereby the debtor secures to the

creditor the fulfillment of a principal obligation, immediately
making immovable property or real rights over immovable property
answerable to the principal obligation in case it is not complied with
at the time stipulated.

CHATTEL MORTGAGE is a contract by virtue of which a personal

property is recorded in the Chattel Mortgage Register as security for
the performance of an obligation.
If the movable, instead of being recorded, is delivered to the
creditor, it is pledge and not chattel mortgage.