Article 2 12 of the Property Law stipulates that the pledge right is established when the pledger delivers the pledged property.
The object of chattel pledge is chattel. Because movable property is easy to transfer, it is difficult for the pledgee to control it if it is not delivered to the pledgee. Therefore, in order to ensure the realization of chattel pledge, the Property Law stipulates that the establishment of chattel pledge is based on the delivery of pledged property.
It should be noted that the entry into force of the chattel pledge contract does not mean the establishment of the pledge. The chattel pledge contract concluded between the pledgor and the pledgee shall come into effect at the time of conclusion, but it shall not come into effect after the conclusion of the pledge contract and before the pledged property is transferred to the pledgee. Pledge only takes effect when the pledgor actually transfers the pledged property to the pledgee for possession. Whether the pledged property is transferred is the standard to judge whether the pledge is effective. If the parties fail to transfer the pledged property, the pledge is invalid. Whether the pledge contract is valid or not should be judged according to the relevant provisions of the Contract Law. Invalid pledge and invalid contract are two different issues, and there is no necessary connection between them.
Second, the legal responsibility of the pledgee of chattel pledge
The pledgee of chattel pledge shall bear civil liability if the pledged property is lost or damaged due to improper custody. Where the pledged property may be lost or damaged, the pledgor may require the pledgee to deposit the pledged property or pay off debts in advance to return the pledged property, and the pledgee may require the pledgor to provide corresponding guarantees. If the pledgee fails to provide the pledged property, the pledgee may auction or sell the pledged property for priority compensation or deposit it with a third party agreed with the pledger.
If the redemption date or delivery date indicated on various bills is earlier than the debt performance period, the pledgee may redeem or deliver the goods before the debt performance period expires, and agree with the pledgor that the cashed price or the extracted goods will be used to pay off the debt in advance or deposit with a third party agreed with the pledgor. Where the property rights in stocks or trademarks, patents or copyrights that can be transferred according to law are pledged, the pledgor and the pledgor shall, after signing a written contract, register the pledge with the securities registration agency or its administrative department, and the pledge contract shall take effect from the date of registration.
Legal citation
law of contract
law of property