Section 585: Contract of pledge or deposit deemed to be made

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 security for the performance of a promise by another person, a contract of pledge or 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 (herchaha) collateraled or deposited goods.