Security and Pledge – Of the preference granted by the contract of pledge

Security and Pledge – Of the preference granted by the contract of pledge

Art. 3145. Preference afforded by pledge. Pledge gives the pledgee the right to be satisfied from the thing pledged and its fruits in preference to unsecured creditors of the pledgor and to other persons whose rights become effective against the pledgee after the pledge has become effective as to them.

Art. 3159. Fruits of things pledged. The pledgee is entitled to receive the fruits of the thing pledged and to retain them as security. He may also apply them to the secured obligation, even if not yet due.