tailieunhanh - Gale Encyclopedia Of American Law 3Rd Edition Volume 7 P54

Gale Encyclopedia of American Law Volume 7 P54 fully illuminates today's leading cases, major statutes, legal terms and concepts, notable persons involved with the law, important documents and more. Legal issues are fully discussed in easy-to-understand language, including such high-profile topics as the Americans with Disabilities Act, capital punishment, domestic violence, gay and lesbian rights, physician-assisted suicide and thousands more. | 518 PLESSY V. FERGUSON Pledged property must be in the possession of a pledgee. This can be accomplished in one of two ways. The property can be in the pledgee s actual possession meaning physical possession for example Mary keeps John s stereo at her house . Otherwise it can be in the constructive possession of the pledgee meaning that the pledgee has some control over the property which typically occurs when actual possession is impossible. For example a pledgee has constructive possession of the contents of a pledgor s safety deposit box at a bank when the pledgor gives the pledgee the only keys to the box. In pledges both parties have certain rights and liabilities. The contract of pledge represents only one set of these the terms under which the debt or obligation will be fulfilled and the pledged property returned. On the one hand the pledgor s rights extend to the safekeeping and protection of his property while it is in possession of the pledgee. The property cannot be used without permission unless use is necessary for its preservation such as exercising a live animal. Unauthorized use of the property is called conversion and may make the pledgee liable for damages thus Mary should not use John s stereo while in possession of it. For the pledgee on the other hand there is more than the duty to care for the pledgor s property. The pledgee has the right to the possession and control of any income accruing during the period of the pledge unless an agreement to the contrary exists. This income reduces the amount of the debt and the pledgor must account for it to the pledgee. Additionally the pledgee is entitled to be reimbursed for expenses incurred in retaining caring for and protecting the property. Finally the pledgee need not remain a party to the contract of pledge indefinitely. She can sell or assign her interest under the contract of the pledge to a third party. However the pledgee must notify the pledgor that the contract of pledge has been sold or .