1896de Book3 Chapter09 Title02

GERMAN CIVIL CODE OF 1896

• Based on the English Translation by: Wang, Chung Hui (1907). The German Civil Code, translated and annotated with historical introduction and appendices. London: Stevens and Sons. [available on Archive.org]
• Original Version in German.

Book III. Low of Things.

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Chapter IX. Pledge of Moveables and of Rights.

Title II. Pledge of Rights.

Section 1273.

• [I] A right can also be the object of pledge.
• [II] The provisions relating to pledge of moveables apply mutatis mutandis to pledge of rights in so far as a contrary intention does not appear from 1274 to 1296. The provisions of 1208 and 1213, par. 2, are not applicable.

Section 1274.

• [I] The grant of a pledge of a right is effected according to the provisions applicable to the transfer of rights. If for the transfer of the right the delivery of a thing is necessary, the provisions of 1205, 1206 apply.
• [II] So long as a right is not transferable, a pledge of the right may not be granted.

Section 1275.

• If a right by virtue of which an act of performance can be demanded is the object of a pledge, then to the legal relation between the pledgee and the person bound thereto, the provisions which, in the case of transfer of the right, apply to the legal relation between the acquirer and the person bound thereto, and in the case of an order of the Court issued according to 1217, par. 1, the provision of 1070, par. 2, applies mutatis mutandis.

Section 1276.

• [I] A pledged right may be terminated by juristic act only with the consent of the pledgee. The consent shall be declared to the person in whose favour it is given; it is irrevocable. The provision of 876, sentence 3, remains unaffected.
• [II] The same rule applies in the case of a modification of the right so far as it impairs the pledge.

Section 1277.

• The pledgeo may seek satisfaction out of the right only by virtue of an executory title according to the provisions applicable to compulsory execution, unless it is otherwise provided. The provisions of 1229 and 1245, par. 2, remain unaffected.

Section 1278.

• If a right, for the pledging of which the delivery of a thing is necessary, is the object of a pledge, the provisions of 1253 apply mutatis mutandis to the termination of the pledge by the return of the thing.

Section 1279.

• The special provisions of 1280 to 1290 apply to the . pledge of a claim.

Section 1280.

• The pledging of a claim which can be transferred by a mere contract of assignment is effective only if the creditor notifies the debtor of it.

Section 1281.

• The debtor may only perform his part in favour of the pledgee and the creditor in common. Each of them may require that performance be effected in favour of them in common; either may require, in lieu of performance, that the thing owed be lodged on their joint account, or, if it is not suitable for lodgment, that it be delivered to a custodian appointed by the Court.

Section 1282.

• [I] If the conditions specified in 1228, par. 2, have arisen, the pledgee is entitled to collect the claim, and the debtor can perform his part only in favour of him. The right to collect a money claim belongs to the pledgee only in so far as is necessary for his satisfaction. Where he is entitled to collect the claim, he may also require that the money claim be assigned to him in lieu of payment.
• [II] The pledgee is not entitled to make any other disposition affecting the claim; the right to seek satisfaction out of the claim under 1277 remains unaffected.

Section 1283.

• [I] If the maturity of the pledged claim depends upon notice, the creditor may give notice without the consent of the pledgee, unless the latter is entitled to draw the emoluments of the claim.
• [II] Notice by the debtor is effective only if it is communicated both to the pledgee and to the creditor.
• [III] If the conditions specified in 1228, par. 2, have arisen, the pledgee is also entitled to give notice; a communication addressed to the pledgee is deemed to be a notice by the debtor.

Section 1284.

• The provisions of 1281 to 1283 do not apply where the pledgee and the creditor agree otherwise.

Section 1285.

• [I] Where payment is to be made to the pledgee and the creditor in common, both are mutually bound to concur in its collection, if the claim is due.
• [II] Where the pledgee is entitled to collect the claim without the concurrence of the creditor, he shall take care for the proper collection. He shall, without delay, notify the creditor of the collection, unless the notification is impracticable.

Section 1286.

• If the maturity of the pledged claim depends upon notice, and if the right to give notice does not belong to the pledgee, he can require notice from the creditor, where the collection of the claim is required by the rules of proper management of property on account of its security becoming endangered. Under the same conditions the creditor may require the pledgee to give his consent to the notice, where the consent is necessary.

Section 1287.

• If the debtor makes payment in conformity with 1281, 1282, upon payment the creditor acquires the object given in payment, and the pledgee acquires a pledge over the object. If the payment consists in the transfer of the ownership of a piece of land, the pledgee acquires a cautionary hypotheca.

Section 1288.

• [I] If a money claim is collected in conformity with 1281, the pledgee and the creditor are mutually bound to concur, provided it is practicable without injury to the interest of the pledgee, in investing the sum collected according to the provisions applicable to the investment of money belonging to a ward, and simultaneously a pledge over the sum is granted to the pledgee. The creditor determines the manner of investment.
• [II] If the collection is made in conformity with 1282, the claim of the pledgee, where the sum collected is due to him for his satisfaction, is deemed to be satisfied by the creditor.

Section 1289.

• A pledge over a claim extends to the interest on the claim. The provisions of 1123, par. 2, and of 1124, 1125, apply mutatis mutandis; a notification by the pledgee to the debtor that he exercises his right of collection takes the place of the distraint.

Section 1290.

• Where a claim is subject to several pledges, only that pledgee whose pledge has priority to the other pledges is entitled to collect the claim.

Section 1291.

• The provisions relating to the pledge of a claim apply also to the pledge of a land charge or of an annuity charge.

Section 1292.

• For the pledging of a bill of exchange or other instrument which can be transferred by indorsement, a real agreement between the creditor and the pledgee and delivery of the indorsed instrument are sufficient.

Section 1293.

• The provisions relating to the pledge of moveables apply to the pledge of an instrument payable to bearer.

Section 1294.

• If a bill of exchange, or any other instrument which can be transferred by indorsement, or an instrument payable to bearer, is the object of a pledge, the pledgee is, even though the conditions specified in 1228, par. 2, have not yet arisen, entitled to collect the claim, and where notice is necessary, to give notice, and the debtor may only make payment to him.

Section 1295.

• If a pledged instrument which can be transferred by indorsement has an exchange or market price, the creditor is, after the fulfilment of the conditions specified in 1228, par. 2, entitled to cause the instrument to be sold as provided for in 1221.

Section 1296.

• The pledge of a negotiable instrument extends to the interest coupons, annuity coupons, or dividend coupons belonging thereto, provided they have been delivered to the pledgee. The pledgor may, unless it is otherwise provided, require the return of the coupons, provided they become due before the fulfilment of the conditions specified in 1228, par. 2.