If the pledgor fails to pay the debt when due, what may the pledgee do with the property?
A mortgagee, mortgager or pledgee of property may insure the property.
If the pledgor fails to pay the debt secured when due, the pledgee has the right to enforce his pledge.
A pledge or delivery of personal property is for the purpose of securing a debt owing the pledgee.
The pledgee cannot be a purchaser at the sale, unless so permitted by express stipulation in the contract of pledge.
He also has the right to have the property carefully preserved and cared for while in the possession of the pledgee.
In a pledge, however, the possession passes to the pledgee or creditor, while the title remains in the pledgor or debtor.
The pledgee is entitled to retain possession of the property pledged until the debt owing him is paid.
In pledging stock it is a common practice to declare that the pledgee shall be entitled to the dividends that are declared.
The pledgee cannot himself purchase the property unless the contract of pledge expressly so provides.