Maintenance of the Pledged Item and Benefits
Effective management of security begins with a precise allocation of the parties' rights and duties. Under the relevant norm of the Civil Code, in a registered pledge the pledgor or the pledgee, and in a possessory pledge the pledgee or a third person designated by him, bears the duty to maintain the pledged item properly. Each party has the right to inspect the condition of the item held by the other — including its size, weight and storage conditions. Where the item is in the pledgor's possession, he may take benefits from it; the pledgee may do so only if this is provided by agreement, although he is presumed entitled to receive fruits where this follows from the nature of the item. Benefits received by the pledgee are credited to the secured claim, and at the pledgor's request the pledgee must render an account of them. The pledgee may demand reimbursement of necessary expenses incurred on the item, while other expenses are reimbursed according to the rules on management of affairs without mandate.