1. A commercial pledge is the one contracted on a movable property as security for a commercial debt.
2. With the exception of the restrictions stipulated herein or in any other law, a commercial pledge may be proved by all means of evidence, whether in regard to the contracting parties or against third parties.

1. A commercial pledge shall become effective against the debtor or other parties, only by transfer of possession of the pledged article from the pledgor to the pledgee or to a third person appointed by the contracting parties and it remains in the possession of such person receiving it until the lapse of the pledge; or unless it is placed under joint possession in such manner as to prevent the pledgor from disposing thereof without the knowledge of the pledgee.
2. The pledgee or the third person shall be deemed as having possession of the pledged article if it is placed at his disposal in such manner as will lead others to believe that the article has come into his custody; or if he receives a deed representing the pledged article vesting unto its holder the sole right to take delivery of such article.
3. Possession of rights passes by the delivery of the instruments establishing them; and where an instrument has been deposited with a third party, the delivery of the deposit receipt shall be deemed as the delivery of the instrument itself, provided the instrument is adequately described in the receipt and provided that the depositary accepts possession thereof for the account of the pledgee. In such case, the depositary shall be considered as having waived every right he had in retaining the instrument for his own account for a reason existing prior to the pledge, unless he had reserved such right when he accepted to hold possession of the instrument for the account of the pledgee.

1. Where the pledged item consists of nominative instruments, pledge thereof shall be made in writing by an assignment of such instruments stating that it is as a security. This shall be marked on the instrument itself and such assignment shall be entered in the registers of the party who issued the instrument. The rank of the pledgee creditor shall be determined from the date of such entry.
2. As for promissory notes, pledge thereof shall be effected by an endorsement therein stating that the value is for pledge or security or any other statement to that effect.

1. A debtor who is indebted with a commercial debt may pledge in favor of his creditor by a written instrument a debt owed to him by a third party, in which case he shall have to deliver to the pledgee the deed establishing the said debt.
2. The pledge of a debt shall not be valid as against the debtor on whose debt the pledge was effected, unless such pledge is notified to him or unless he accepts it. It shall not, also, be valid as against persons other than such debtor, unless the pledgee holds possession of the pledged debt deed.
3. The rank of the pledge shall be determined as of the date of notification or acceptance.

A pledgee creditor is bound to take all the necessary measures to safeguard the pledged article and undertake maintenance thereof. Where the pledged article is an actual commercial paper, the pledgee shall on the maturity date carry out the proceedings necessary to protect the right established therein and collect it. The pledgor shall be bound to pay all expenses incurred by the pledgee in this regard.

A pledgee creditor shall exercise on the pledgor’s account all the rights and procedures relevant to the article pledged, to receive its value, profits, interests and any other sums resulting therefrom, provided that he shall deduct what he has received from the expenses incurred by him on behalf of the pledgor, and then from the interest, then from the principal amount secured by the pledge, unless the agreement provides otherwise.

A pledgee creditor shall, when requested by the pledgor, deliver to him a receipt showing the nature, type, quantity, weight and other distinguishing features of the pledged article.

1. Where a pledge is effected on a replaceable article, it shall remain valid even if the pledged article has been replaced by another article of the same kind.
2. Where the pledged article is not a replaceable article, the pledgee may replace it by another article, provided that it is agreed upon to that effect in the contract of pledge and that the pledgee creditor accepts the substitute, without prejudice to the rights of a bona fide third party.

1. In case the debtor (pledgor) fails to pay on the date of maturity the debt secured by the pledge, the creditor
(pledgee) may, after the lapse of seven days from the date of service of notice on the debtor (pledgor) to pay, submit a petition to the Court to the effect of authorizing him to sell the pledged article. The petition shall be considered promptly and without delay and the Court shall determine the mode of payment.
2. The pledgee shall have a priority right to collect his debt- principal, interests and expenses incurred by him in claiming it - from the price resulting from the sale.

In case the pledge is established on several properties, the pledgee is entitled to designate the property to be sold unless otherwise agreed upon. In all cases, the sale may only cover what is needed to settle the pledgee’s right, except where the sold item is indivisible.

In case the market price of the pledged article decreases and becomes insufficient to secure the debt, the creditor may fix a suitable time limit for the pledgor to complement the security. If the pledgor refuses to do so or where the time limit expires and the pledgor fails to complement the security, the creditor may cause the article pledged to be sold even before the maturity date by adopting the proceedings stipulated in Article (172).

In case the pledged article is subject to perishing, deterioration or decrease in value, or where its possession necessitates the incurring of exorbitant expenses and the pledgor is unwilling to replace it by another article, either the creditor or the pledgor may apply to the Court requesting an authorization to sell it forthwith and determine the method of sale, in which case the pledge shall transfer to the price resulting from the sale.

1. Any agreement concluded at the time or after the establishment of a pledge which grants the pledgee creditor, in case the debtor fails to settle the debt on the maturity date, the right to acquire or sell the pledged article, without observing the provisions and proceedings provided for in Article (172), shall be null and void.
2. Nevertheless, when the whole debt or an installment thereof has fallen due, it may be agreed that the debtor shall cede to the creditor the whole or part of the pledged article in settlement of the whole debt or part thereof.

Where the pledged article is a instrument, the nominal value of which has not been paid in full, the pledgor shall, when called upon to pay the unpaid portion, present to the pledgee the sums of money needed to pay such portion at least two days before the maturity date; otherwise the creditor may sell the instrument according to the proceedings provided for in Article (172).