RIGHT OF PLEDGEE TO CAUSE SALE OF THE THING PLEDGED

Art.  2112.  The  creditor  to  whom  the  credit  has  not  been satisfied in due time, may proceed before a Notary Public to the sale of the thing pledged. This sale shall be made at a public  auction,  and  with  notification  to  the  debtor  and  the owner  of  the  thing  pledged  in  a  proper  case,  stating  the amount for which the public sale is to be held. If at the first auction  the  thing  is  not  sold,  a  second  one  with  the  same formalities shall be held; and if at the second auction there is  no  sale  either,  the  creditor  may  appropriate  the  thing pledged.  In  this  case  he  shall  be  obliged  to  give  an acquittance for his entire claim. (1872a)

> The thing pledged may be alienated for the payment to the creditor when the principal obligation becomes due
 

THE FORMALITIES REQUIRED FOR SUCH SALE

1.   The debt is due and unpaid
2.   The sale must be at a public auction
3.   There must be notice to the pledgor and owner, stating the amount due
4.   The  sale  must  be  made  with  the  intervention  of  a  notary public
 

RIGHT OF PLEDGEE TO APPROPRIATE THING PLEDGED

> Serves  as  an  exception  to  the  prohibition  on  pactum commissorium
> The pledgee may appropriate the thing pledged if after the first and second auctions, the thing is not sold
> If the creditor appropriates the thing, it shall be considered as full payment of his entire claim—he is thus obliged to an acquittance  for  the  same.    The  debtor  is  not  entitled  for the excess in case the value of the thing pledged is more than the principal obligation.