First, the pledgee is slow to exercise his rights.

With the change of market price, there is still the risk of price drop or accidental loss of collateral. Therefore, once the debt performance period expires and the debtor fails to pay off the debt, the pledgee should exercise the pledge right in time to avoid the loss of the pledgor, and the pledgor also has the right to request the pledgee to exercise his rights. Due to the pledgee's delay in exercising his rights, the price of the pledged property is reduced, or other damage or loss occurs, which makes it impossible to realize the original price change of the pledged property. In this case, the pledgee shall be liable for the losses of the pledgor.

Article 437 of the Civil Code: After the expiration of the debt performance period, the pledger may request the pledgee to exercise the pledge right in time; If the pledgee fails to exercise it, the pledger may request the people's court to auction or sell the pledged property.

Where the pledgor requests the pledgee to exercise the pledge right in time, and the pledgee delays in exercising the right and causes damage to the pledgee, the pledgee shall be liable for compensation.

Second, what rights does the pledgee enjoy?

(1) The pledgee may possess the pledged property.

The pledge should be movable property, and the money can also be used as pledge after it is clearly defined in the form of special account, seal and deposit.

(2) The pledgee may collect fruits.

The pledgee has the right to collect the fruits of the pledged property, unless otherwise agreed in the pledge contract, and the fruits collected by the pledgee shall first offset the expenses for collecting the fruits; During the existence of the pledge, if the pledgee uses, leases or disposes of the pledged property without the consent of the pledger, thus causing losses to the pledgee, the pledgee shall be liable for compensation.

(3) Preservation of the pledged property.

Where the pledged property may be damaged or obviously reduced in value, which is enough to endanger the rights of the pledgee, the pledgee may require the pledgor to provide corresponding guarantees. If the pledgor cannot provide it, the pledgee may auction or sell the pledged property, and agree with the pledgor to pay off the secured creditor's rights in advance with the proceeds from the auction or sale, or deposit it with a third party agreed with the pledgor.

(4) The pledgee has the priority to be compensated.

If the pledgee is not paid off at the expiration of the debt performance period, the pledgee may continue to retain the pledged property and exercise his rights with all the pledged property. After the pledgor pays off the secured creditor's rights, the pledgee shall return the pledged property. At the expiration of the debt performance period, the pledgor requires the pledgee to exercise his rights in time, and the pledgee is slow to exercise his rights, resulting in a decline in the price of the pledged property, and the pledgee shall be liable for the losses caused thereby.

(5) Pledgee pledges.

During the pledge period, with the consent of the pledger, the pledgee may pledge the pledged property in his possession for a third party to guarantee his debts. However, it should be within the scope of the creditor's rights guaranteed by the original pledge, and the excess part does not have the effect of priority compensation. The effect of pledge is superior to that of original pledge. During the existence of the pledge, the pledge made by the pledgee for a third party to guarantee its debts without the consent of the pledger is invalid. The pledgee shall be liable for the damage caused by the pledge.

Third, how does the pledgee exercise the pledge?

Pledge of rights means that the debtor or the third party transfers its certificate of rights to the creditor for possession, and takes the rights represented by the certificate of rights as the guarantee of creditor's rights. When the debtor fails to perform the debt, the creditor has the right to cash the certificate of title into the price, and the creditor has the priority to be compensated.

Only when the debtor still fails to perform the debt at the expiration of the performance period can the pledgee exercise the pledge right. Prior to this, the pledgee who directly occupies the pledged property shall fulfill the obligation of properly keeping the pledged property.

The pledgee should choose an appropriate way to exercise the pledge right according to the characteristics of the pledged property, and the movable property can be discounted, auctioned or sold; The certificate of title can be cashed, withdrawn, auctioned or transferred.

The proceeds from the pledgee's disposal of the pledged property shall be used to pay off the principal creditor's rights and interest, liquidated damages, damages, expenses for keeping the pledged property and expenses for realizing the pledge.

Disputes between the pledgee and the pledger arising from the exercise of the pledge right can be settled through negotiation, litigation and arbitration. Where a lawsuit is filed, the pledgee may sue the pledgor and the debtor who pledged the creditor's rights, or may sue the debtor who pledged the creditor's rights alone.

Rights and obligations are consistent. If the pledgee fails to exercise the pledge right in time, resulting in damage or loss of the pledged property, the pledgee shall bear the corresponding liability for compensation.