(1) If a person
takes delivery of goods as security for payment of a debt lent to
another person, a contract of collateral is deemed to have been
concluded and if a person takes delivery of goods as a security for
the performance of a promise by another person, a contract of
deposit shall be deemed to have been concluded.
Explanation: For the purposes of this Chapter, the term
“goods” means any property and includes title to or an instrument
establishing title to that property.
(2) A contract of collateral or deposit may be made
pursuant to sub-section (1) in relation to the debt for the payment of
which security is taken and interest of the debt, and if a deposit is
taken as a security for the performance of a promise, other expenses
related to that promise and expenses incurred in the care of
collateraled or deposited goods.