Civil Code

A If there has been a failure of performance with respect to the claim secured by a pledge, the pledgee may directly collect the claim that is the subject of the pledge. In this case, if the value of the benefit received by the pledgee exceeds the amount of the claim secured thereby, the pledgee must pay money equivalent to the difference to the pledgor.

If monies are A third party obligor may assert against the subject matter of a pledged claim, pledgor or any other third party performance or any other cause for extinguishing the obligation that was effected with respect to the pledgee may collect after the time when the same notice was given or the consent was made pursuant to the extentprovisions of Article 467, paragraph (1), which are to be complied with pursuant to the portion that corresponds provisions of Article 364 with regard to the amountcreation of the pledge. In this case, the pledgee is not required to pay the pledgor money equivalent to the value of the benefit received until the pledgee's own claim becomes due and payable.

If the due date ofIn the pledged claimcase referred to in the preceding paragraph arrives beforefirst sentence of the due date ofpreceding paragraph, if the pledgee's claim of the pledgeebecomes due and payable, the pledgee may havemust pay the third party obligor deposit with official depository thatpledgor the balance obtained by deducting the amount to be paid toof the pledgee. In this case,pledgee's own claim from the pledge exists overvalue of the amount so depositedbenefit received.

If monies are the subject matter of the pledged claim is not moniesand its due date arrives before a failure of performance occurs with respect to the claim of the pledgee, the pledgee has may have the pledge over third party obligor deposit with official depository that amount to be paid to the thing received for pledgee. In this case, the satisfaction of pledge exists over the claimamount so deposited.

If the subject of the pledged claim is the delivery of a thing, the pledgee has the pledge over the thing received for the satisfaction of the claim. In this case, the provisions of the second sentence of paragraph (1) and paragraph (3) do not apply.

If there is a default with respect to a claim secured by a mortgage, the mortgage extends to the fruits of the mortgaged immovables derived after the default(limited to those that have not been collected).