(1) If
anyone borrows a debt or enters into a promise by pledging to the
creditor any goods in which the he or she has no right or ownership
or which has been obtained under a contract which is void under
this Part and the pledgee does not know that fact, the pledgee shall
have the right to demand the borrower giving such a collateral or
deposit to give collateral or deposit of the goods owned by him or
her equal to that amount, and if the he or she fails to give the
collateral or deposit so demanded, the pledgee shall have the right
to get the contract voided.
(2) If any goods obtained under a void contract are
pledged as a collateral or deposit and the contract has already
become void before giving such collateral or deposit or the pledgee
had the knowledge that the goods pledged as the collateral or
deposit did not belong to the pledger, the pledgee shall have no
right in such goods and may recover the amount to be recovered by
him or her or have the promise performed from other goods
belonging to the pledger.
(3) If the pledger has a partial or limited title to, or
ownership of, the goods pledged as the collateral or deposit, the
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pledgee also shall have right and title to such goods to that extent
only.