1. If the pledged property perishes while in the possession of the pledgee, they shall be liable for its value as pf the date of taking possession. 2. If the value of the pledged property is equal to the value of the secured debt, the debt shall be extinguished, regardless of whether the perishing resulted from the pledgee's transgression or not. 3. If the value of the pledged property is greater than the debt, the debt shall be extinguished in respect of the pledgor, and the pledgee shall be liable for the remainder if the perishing resulted from their transgression or negligence in its preservation. 4. If the value of the pledged property is less than the debt, the debt shall be extinguished to the extent of such value, and the creditor shall have recourse against the pledgor for the remainder.
Interpretation and application must be checked against the official text and current version.