Article 2110
ELI5— what this means for you
If the thing pledged is returned by the pledgee (person holding collateral) to the pledgor (person giving collateral) or owner, the pledge is extinguished.
Official text — RA 386
If the thing pledged is returned by the pledgee to the pledgor or owner, the pledge is extinguished. Any stipulation to the contrary shall be void.
If subsequent to the perfection of the pledge, the thing is in the possession of the pledgor or owner, there is a prima facie presumption that the same has been returned by the pledgee. This same presumption exists if the thing pledged is in the possession of a third person who has received it from the pledgor or owner after the constitution of the pledge. (n)
Source: lawphil.net (RA 386 as amended)
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