IN PLEDGE, PUBLIC INSTRUMENT NECESSARY TO BIND THIRD PERSONS

Art.  2096.  A  pledge  shall  not  take  effect  against  third persons if a description of the thing pledged and the date of the pledge do not appear in a public instrument. (1865a)
 

PUBLIC INSTRUMENT NECESSARY TO BIND THIRD PERSONS

1.   CONTENTS OF PUBLIC INSTRUMENT
a.    The  pledge  is  not  binding  against  third  persons unless in addition to delivery of the thing pledged,
it is embodied in a public instrument
b.   Description  of  the  thing  pledged;  and  the  date  of pledge

2.   OBJECT OF THE REQUIREMENT—to forestall fraud, because a  debtor  may  attempt  to  conceal  his  property  from  his creditors  when  he  sees  it  in  danger  of  execution  by simulating a pledge thereof with an accomplice 
 

THE DATE OF THE PLEDGE IS RELEVANT TO KNOW IF THERE IS VALID CONSIDERATION IN THE FIRST PLACE.  

WHAT IS A PUBLIC INSTRUMENT?

     The  pledge  contract  should  be  the  one  in  the  public instrument, acknowledged by the notary public
     What if there is litigation ensued and the pledge is not in a public instrument?  Is this binding upon the court?  No, it is  not.    There  should  be  payment  of  documentary  stamp tax.