35-06 Pledge

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CHAPTER 35-06PLEDGE35-06-01. Pledge defined. Pledge is a deposit of personal property as security for theperformance of another act. Every contract by which the possession of personal property is<br>transferred as security only is a pledge and its validity and effect are governed by the provisions<br>of this chapter except as modified by the provisions of title 41.35-06-02.Lien of pledge dependent on possession.The lien of a pledge isdependent on possession and no pledge is valid until the property pledged is delivered to the<br>pledgee or to a pledgeholder as hereinafter prescribed.35-06-03.Increase of property pledged with property.The increase of propertypledged is pledged with the property.35-06-04. Lien may be pledged. One who has a lien upon property may pledge it to theextent of that person's lien.35-06-05. Pledge by apparent owner - Effect - Estoppel of actual owner. One whohas allowed another to assume the apparent ownership of property for the purpose of making<br>any transfer of it cannot set up that person's own title to defeat a pledge of the property made by<br>the other to a pledgee who received the property in good faith in the ordinary course of business<br>and for value.35-06-06. Pledge to secure another's obligation - Effect - Withdrawal. Property maybe pledged as security for the obligation of a person other than the owner and in so doing the<br>owner has all the rights of a pledgor for the owner except that one who pledges property as<br>security for the obligation of another cannot withdraw the property pledged otherwise than as a<br>pledgor might, and if the owner receives from the debtor a consideration for the pledge, the<br>owner cannot withdraw it without the debtor's consent.35-06-07. Pledgeholder defined - Duties. A pledgor and pledgee may agree upon athird person with whom to deposit the property pledged who, if the third person accepts the<br>deposit, is called a pledgeholder, and the third person must enforce all the rights of the pledgee<br>unless authorized by the pledgee to waive them.35-06-08. Liability of pledgee and of pledgeholder. A pledgee or a pledgeholder forreward assumes the duties and liabilities of a depositary for reward. A gratuitous pledgeholder<br>assumes the duties and liabilities of a gratuitous depositary.35-06-09. Exoneration of pledgeholder. A pledgeholder for reward cannot exoneratethe pledgeholder from the pledgeholder's undertaking, and a gratuitous pledgeholder can do so<br>only by giving reasonable notice to the pledgor and pledgee to appoint a new pledgeholder, and<br>in case of their failure to agree, by depositing the property pledged with some impartial person<br>who then will be entitled to a reasonable compensation for that person's care of the same.35-06-10. Fraudulent misrepresentation of property pledged - Rights of creditor.When a debtor has obtained credit or an extension of time by a fraudulent misrepresentation of<br>the value of the property pledged by or for the debtor, the creditor may demand a further pledge<br>to correspond with the value represented and in default thereof may recover the creditor's debt<br>immediately though it is not actually due.35-06-11. Pledge enforced - Sale when performance due. When performance of theact for which a pledge is given is due in whole or in part, the pledgee may collect what is due the<br>pledgee by a sale of the property pledged, subject to the rules and exceptions prescribed in this<br>chapter and in sections 41-09-98 through 41-09-123.35-06-12. Demand for performance necessary. Repealed by S.L. 1965, ch. 296,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t35/pdf/t35c06.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 35-06PLEDGE35-06-01. Pledge defined. Pledge is a deposit of personal property as security for theperformance of another act. Every contract by which the possession of personal property is\u003cbr\u003etransferred as security only is a pledge and its validity and effect are governed by the provisions\u003cbr\u003eof this chapter except as modified by the provisions of title 41.35-06-02.Lien of pledge dependent on possession.The lien of a pledge isdependent on possession and no pledge is valid until the property pledged is delivered to the\u003cbr\u003epledgee or to a pledgeholder as hereinafter prescribed.35-06-03.Increase of property pledged with property.The increase of propertypledged is pledged with the property.35-06-04. Lien may be pledged. One who has a lien upon property may pledge it to theextent of that person's lien.35-06-05. Pledge by apparent owner - Effect - Estoppel of actual owner. One whohas allowed another to assume the apparent ownership of property for the purpose of making\u003cbr\u003eany transfer of it cannot set up that person's own title to defeat a pledge of the property made by\u003cbr\u003ethe other to a pledgee who received the property in good faith in the ordinary course of business\u003cbr\u003eand for value.35-06-06. Pledge to secure another's obligation - Effect - Withdrawal. Property maybe pledged as security for the obligation of a person other than the owner and in so doing the\u003cbr\u003eowner has all the rights of a pledgor for the owner except that one who pledges property as\u003cbr\u003esecurity for the obligation of another cannot withdraw the property pledged otherwise than as a\u003cbr\u003epledgor might, and if the owner receives from the debtor a consideration for the pledge, the\u003cbr\u003eowner cannot withdraw it without the debtor's consent.35-06-07. Pledgeholder defined - Duties. A pledgor and pledgee may agree upon athird person with whom to deposit the property pledged who, if the third person accepts the\u003cbr\u003edeposit, is called a pledgeholder, and the third person must enforce all the rights of the pledgee\u003cbr\u003eunless authorized by the pledgee to waive them.35-06-08. Liability of pledgee and of pledgeholder. A pledgee or a pledgeholder forreward assumes the duties and liabilities of a depositary for reward. A gratuitous pledgeholder\u003cbr\u003eassumes the duties and liabilities of a gratuitous depositary.35-06-09. Exoneration of pledgeholder. A pledgeholder for reward cannot exoneratethe pledgeholder from the pledgeholder's undertaking, and a gratuitous pledgeholder can do so\u003cbr\u003eonly by giving reasonable notice to the pledgor and pledgee to appoint a new pledgeholder, and\u003cbr\u003ein case of their failure to agree, by depositing the property pledged with some impartial person\u003cbr\u003ewho then will be entitled to a reasonable compensation for that person's care of the same.35-06-10. Fraudulent misrepresentation of property pledged - Rights of creditor.When a debtor has obtained credit or an extension of time by a fraudulent misrepresentation of\u003cbr\u003ethe value of the property pledged by or for the debtor, the creditor may demand a further pledge\u003cbr\u003eto correspond with the value represented and in default thereof may recover the creditor's debt\u003cbr\u003eimmediately though it is not actually due.35-06-11. Pledge enforced - Sale when performance due. When performance of theact for which a pledge is given is due in whole or in part, the pledgee may collect what is due the\u003cbr\u003epledgee by a sale of the property pledged, subject to the rules and exceptions prescribed in this\u003cbr\u003echapter and in sections 41-09-98 through 41-09-123.35-06-12. Demand for performance necessary. Repealed by S.L. 1965, ch. 296,"])</script><script>self.__next_f.push([1,"3c:[\"$\",\"article\",null,{\"className\":\"article-content\",\"children\":[[\"$\",\"header\",null,{\"className\":\"article-header\",\"children\":[[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/\",\"className\":\"article-category\",\"children\":[\"North Dakota\",\" Statutes\"]}],[\"$\",\"h1\",null,{\"className\":\"article-title\",\"children\":\"35-06 Pledge\"}]]}],[\"$\",\"div\",null,{\"className\":\"article-body statute-content\",\"dangerouslySetInnerHTML\":{\"__html\":\"$3e\"}}],false]}]\n"])</script><script>self.__next_f.push([1,"3d:[\"$\",\"aside\",null,{\"className\":\"right-sidebar\",\"children\":[\"$\",\"div\",null,{\"className\":\"related-sidebar\",\"children\":[[\"$\",\"h3\",null,{\"children\":[[\"$\",\"span\",null,{\"className\":\"emoji\",\"children\":\"⚖️\"}],\" State 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