Ar cle 432 A pledgee is obligated to well keep the pledged property, and shall be liable for compensa on where the pledged property is destructed, damaged, or lost due to his improper custody. Where the pledgee’s act is likely to cause the pledged property to be destructed, damaged, or lost, the pledgor may request the pledgee to place the pledged property in escrow, or request the pledgee to discharge the obliga on before it is due and return the pledged property. Ar cle 433 Where, due to a cause the pledgee is not responsible for, the pledged property is likely to be damaged or signi cantly diminished in value which su ces to jeopardize the pledgee’s rights, the pledgee has the right to request the pledgor to provide addi onal security; where the pledgor fails to do so, the pledgee may have the pledged property sold at auc on or in a sale and may, by agreement with the pledgor, apply the proceeds obtained from the auc on or sale to discharge the obliga on before it is due or place such proceeds in escrow. Ar cle 434 A pledgee shall be liable for compensa on where he, during the e ec ve period of the pledge, repledges the pledged property without the consent of the pledgor to a third person and thus causes destruc on, damage, or loss to the pledged property. Ar cle 435 A pledgee may waive his right to the pledge. Where a debtor creates a pledge on his own property and the pledgee waives his right to the pledge, the other security providers shall be exempted from the security liability to the extent of the rights and interests of the pledgee that are forfeited owing to the waiver of his priority to be paid from the collateral, unless the other security providers are commi ed to s ll provide security. Ar cle 436 A pledgee shall return the pledged property a er the debtor has performed his obliga on or the pledgor has paid the secured claim before it is due. Where a debtor fails to perform an obliga on due or an event upon the occurrence of which the pledge is to be enforced as agreed upon by the par es occurs, the pledgee may, by agreement with the pledgor, appraise and accept the pledged property as sa sfac on of his claim, or have priority to be paid from the proceeds obtained from auc on or sale of the pledged property. The appraisal or sale of the pledged property shall be based on the market price. Ar cle 437 A pledgor may request the pledgee to enforce the pledge in a mely manner a er expira on of the period for the performance of the obliga on; where the pledgee fails to do so, the pledgor may request the people’s court to have the pledged property sold at auc on or in a sale. Where a pledgor requests the pledgee to enforce the pledge in a mely manner, and damage is caused to the pledgor owing to the pledgee’s indolence in doing so, the pledgee shall be liable for compensa on. Ar cle 438 A er a pledged property is appraised and accepted by the pledgee as full or par al sa sfac on of his claim, or is sold at auc on or in a sale, where the value of the pledged property as appraised or the proceeds obtained from auc on or sale is in excess of the amount of the obliga on owed, the excessive por on shall belong to the pledgor, while any de ciency shall be sa s ed by the debtor. Ar cle 439 A pledgor and a pledgee may create a maximum pledge for oa ng claims upon agreement. In addi on to the relevant provisions of this Sec on, the relevant provisions of Sec on 2 of Chapter 17 of this Book shall be applied muta s mutandis to the maximum pledge for oa ng claims. Sec on 2 Pledge on a Right Ar cle 440 The following rights, which a debtor or a third person is en tled to dispose of, may be pledged: (1) bills of exchange, promissory notes, and checks; (2) bonds and cer cates of deposits; (3) warehouse receipts and bills of lading; (4) transferable fund shares and equity; ti ti ti ti ti tt ti ti ti ft ti ti ti ti ff ti ti ti fl fi ti fl ti ti ti ft ffi ti ti ti fi ti ti ti ti ti ti ti ti ti ti ti fi ti fi ti ft ti ti ti ti ti ti ti ti ti ti ti ti ti 48