TRANSFER OF POSSESSION ESSENTIAL IN PLEDGE

Art. 2093. In addition to the requisites prescribed in Article 2085, it is necessary, in order to constitute the contract of pledge, that the thing pledged be placed in the possession of the creditor, or of a third person by common agreement. (1863)

> An  agreement  to  constitute  a  pledge  only  gives  rise  to  a personal action between the contracting parties

> Unless  the  movable  given  as  security  is  delivered  and placed  in  the  possession  of  the  creditor  or  third  person designated  by  the  parties,  the  creditor  acquires  no  real right  to  the  property  because  pledge  is  merely  a  lien  or encumbrance indispensable to the right of lien

> Without delivery there can be no pledge
 

TYPE  OF  DELIVERY  DEPENDS  UPON  NATURE  OF  THING PLEDGED

> Actual  delivery—there  should  be  actual  possession  of  the property pledged 

> But it was held in an earlier case that the symbolic transfer of the goods is acceptable when the owner of the property could  no  longer  dispose  of  the  goods,  the  pledgee  being the only one authorized to do so