UAE Civil Transactions Law

Article 1369

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 · Second: Effects of the Possessory Pledge with Respect to the Pledgee

1. The pledgee may not derive benefit from the property subject to a possessory pledge, whether movable or immovable, without the authorization of the pledgor. 2. The pledgor may authorize the pledgee to derive benefit from the pledged property, provided that the yield derived therefrom shall be deducted first from the expenses incurred on behalf of the pledgor and second from the principal debt.

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