As the pledge is for the benefit of both parties, the pledgee is bound to exercise only ordinary care over the pledge. The pledgee has the right of selling the pledge if the pledgor make default in payment at the stipulated time. In the case of a wrongful sale by a pledgee, the pledgor cannot recover the value of the pledge without a tender of the amount due.
Puerto Rico Pledge of Personal Property as Collateral Security is a legal agreement that enables individuals or businesses to pledge their personal property as a form of security for a loan or debt. This type of collateral security acts as a guarantee for the lender that if the borrower fails to repay the loan, the lender has the right to seize and sell the pledged property to recover the outstanding debt. In Puerto Rico, there are several types of Pledge of Personal Property as Collateral Security that individuals or businesses can utilize depending on their specific needs. These include: 1. Chattel Mortgage: This is a common type of pledge in which movable assets such as vehicles, equipment, or inventory are pledged as collateral. In case of default, the lender can take possession of the pledged property and sell it to recover the outstanding debt. 2. Floating Lien: This type of pledge allows businesses to pledge a broad category of assets, such as accounts receivable, inventory, or equipment. The lien "floats," meaning that as the borrower's assets change, new assets automatically become part of the pledged collateral. 3. Assignment of Accounts Receivable: This pledge involves assigning the rights to the borrower's accounts receivable to the lender. In case of non-payment, the lender can collect the outstanding receivables directly from the debtor. 4. Pawn: This form of pledge typically involves individuals pledging valuable personal property, such as jewelry or electronic devices, in exchange for a loan. If the borrower fails to repay the loan, the lender can sell the pawned items. It is important to note that the terms and conditions of a Puerto Rico Pledge of Personal Property as Collateral Security may vary depending on the agreement between the borrower and lender. Additionally, it is advisable for both parties to seek legal advice to ensure compliance with Puerto Rico's specific laws and regulations regarding collateral security.
