EXTINGUISHMENT  OF  PLEDGE  BY  RETURN  OF  THE  THING PLEDGED

Art. 2110. If the thing pledged is returned by the pledgee to the  pledgor  or  owner,  the  pledge  is  extinguished.  Any stipulation to the contrary shall be void.
 
If subsequent to the perfection of the pledge, the thing is in the  possession  of  the  pledgor  or  owner,  there  is  a  prima facie presumption that the same has  been  returned  by the pledgee. This same presumption exists if the thing pledged is  in  the  possession  of  a  third  person  who  has  received  it from  the  pledgor  or  owner  after  the  constitution  of  the pledge. (n)
 

> One of the essential requisites of pledge is that the thing pledged  be  placed  in  the  possession  of  the  pledgee  or  a third person designated by the parties

> Hence, the  pledge  is extinguished once the thing  pledged is   return   in   the   possession   of   the   pledgor.  This notwithstanding  any  stipulation  that  the  pledge  would continue although the pledgee is no longer in possession of the thing pledged

>  The pledge is also extinguished by payment of the debt, by renunciation or abandonment of the pledge and by sale of the thing pledged at public auction
 

PRESUMPTION OF EXTINGUISHMENT OF PLEDGE

> Possession  by  the  debtor  or  owner  of  the  thing  pledged subsequent to the perfection of the pledge gives rise to a prima facie presumption that the thing has been returned and therefore, the pledge has been extinguished

> This presumption may be disputed or rebutted by evidence to the contrary

> Only  the  accessory  obligation  is  presumed  remitted  and not the principal obligation