1896de Book1 Chapter07

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]

BOOK I. General Principles.

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Chapter VII. Giving of Security.

Section 232.

• [I] If a person has to give security, he may do so:
• (a) By lodging money or negotiable instruments;
• (b) By pledge of claims which have been registered in the Imperial debt ledger or the State debt ledger of one of the States;
• (c) By pledge of moveables;
• (d) By charging hypothecas on land situate within the Empire;
• (e) By pledge of claims secured by hypotheca on land situate within the Empire, or by pledge of land charges or annuity charges on land situate within the Empire.
• [II] If security cannot be given in this manner it is permissible to furnish a proper surety.

Section 233.

• By the lodgment the person entitled acquires a right of pledge over the money or negotiable instruments lodged, and if, according to the provisions of the State law, the title to the money or the negotiable instruments passes. to the Treasury or to the institution designated as the lodgment office, a right of pledge on the claim for restitution.

Section 234.

• [I] Negotiable instruments are suitable to be given as security only if they are payable to bearer, have a market value, and belong to a species in which money belonging to a ward may be invested. Instruments to order indorsed in blank are equivalent to instruments to bearer.
• [II] With the negotiable instruments are to be lodged the interest coupons, annuity coupons, dividend coupons, and renewal coupons.
• [III] Security may be given in negotiable instruments only to the extent of three-fourths of their market value.

Section 235.

• If a person has given security by lodging money or negotiable instruments, he is entitled to exchange the money lodged for suitable negotiable instruments, or the negotiable instruments lodged for other suitable negotiable instruments, or for money.

Section 236.

• An uncertificated claim against the Empire or against a State may be given as security only to the extent of three-fourths of the market value of the negotiable instruments whose issue the creditor may demand in satisfaction of his claim.

Section 237.

• A moveable may be given as security only to the extent of two-thirds of its estimated value. Things may be refused as security if deterioration in them is to be apprehended, or if their custody involves special difficulties.

Section 238.

• [I] A hypothecary claim, a land charge or an annuity charge, is suitable to be given as security only if it fulfils the conditions under which, according to the law of the place where the security is required to be given, money belonging to a ward may be invested in hypothecary claims, land charges, or annuity charges.
• [II] A claim secured by a cautionary hypotheca is not suitable to be given as security.

Section 239.

• [I] A proper surety is a person who possesses property proportional to the amount of security to be given and is subject to domestic jurisdiction.
• [II] The declaration of suretyship must contain a waiver of the plea of beneficium excussionis.

Section 240.

• If the security given become insufficient without any fault on the part of the obligee, it shall be supplemented or new security be given.