UAE Civil Transactions Law

Article 1363

Book Four: Real Securities · Section Two: Possessory Pledge · Chapter Two: Effects of the Possessory Pledge · Part One: Effects of the Possessory Pledge between the Contracting Parties · First: Effects of the Possessory Pledge with Respect to the Pledgor

1. If the pledgor acknowledges that the property subject to a possessory pledge belongs to another, their acknowledgment shall not be effective against the pledgee. 2. The acknowledgment referred to in Paragraph (1) of this Article shall not affect the pledgee's right to retain the pledged property until the debt is satisfied.

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