1. Personal property not capable of manual delivery; 2956. A mortgage of personal property may be made in substantially the following form: This mortgage, made the day of - in the year by by A B, of —, by occupation a --- -, mortgagor, to C D, of occupation a, mortgagee, witnesseth: That the mortgagor mortgages to the mortgagee [here describe the property, as security for the payment to him of dollars, on [or before] the day of -, in the year with interest thereon [or, as security for the payment of a note or obligation, describing it, etc.] A. B. 2957. A mortgage of personal property is void as against creditors of the mortgagor and subsequent purchasers and encumbrancers of the property in good faith and for value, unless: 1. It is accompanied by the affivadit of all the parties thereto that it is made in good faith and without any design to hinder, delay, or defraud creditors; 2. It is acknowledged or proved, certified, and recorded in like manner as grants of real property. 2958. A mortgage of any vessel or part of any vessel under the flag of the United States is void as against any person (other than the mortgagor, his heirs, and devisee, and persons having actual notice thereof) unless the mortgage is recorded in the office of the collector of customs where such vessel is registered or enrolled. 2959. A mortgage of personal property must be recorded in the office of the county recorder of the county in which the mortgagor resides, if the mortgagor be a resident of this state, and it shall also be recorded in the county in which the property mortgaged is situated or, save in the case of live stock, vehicles (other than motor vehicles) and other migratory chattels, to which it is removed. 1923139. 2960. For the purposes of this article property in transit from the possession of the mortgagee to the county of the residence of the mortgagor, or to a location for use, is during a reasonable time for such transportation, to be taken as situated in the county in which the mortgagor resides, or where it is intended to be used. 2961. For a like purpose personal property used in conducting the business of a common carrier is to be taken as situated in the county in which the principal office or place of business of the carrier is located. 2962. A single mortgage of personal property, embracing several things of such character or so situated that by the provisions of this article separate mortgages upon them would be required to be recorded in different places, is only valid in respect to the things as to which it is duly recorded. 2963. Except as it is otherwise in this article provided, mortgages of personal property may be acknowledged or proved and certified, recorded in like manner and with like effect as grants of real property; but they must be recorded in books kept for personal mortgages exclusively. 2964. A certified copy of a mortgage of personal property once recorded may be recorded in any other county, and when so recorded the record thereof has the same force and effect as though it was of the original mortgage. 2965. When personal property mortgaged is thereafter removed from the county in which it is situated, the lien of the mortgage shall not be affected thereby for thirty days after such removal; but, after the expiration of such thirty days, the property mortgaged, save in the case of live stock, vehicles (other than motor vehicles) and other migratory chattels, is exempted from the operation of the mortgage, except as between the parties thereto, until either: 1. The mortgagee causes the mortgage to be recorded in the county to which the property has been removed; or 2. The mortgagee takes possesion of the property as prescribed in the next section. If a mortgage of livestock, vehicles (other than motor vehicles) or other migratory chattels has been recorded as provided in section two thousand nine hundred fifty-nine and within thirty days thereafter a certificate of such record has been filed by the county recorder with the secretary of state as required by sections four hundred eight and four thousand one hundred thirty of the Political Code the property mortgaged may be removed into any county in the state without in any way affecting the lien of the mortgage. 1923—139. 2966. If the mortgagor voluntarily removes or permits the removal of the mortgaged property, save in the case of live stock, vehicles (other than motor vehicles) and other migratory chattels, from the county in which it was situated at the time it was mortgaged, the mortgagee may take possession and dispose of the property as a pledge for the payment of the debt, though the debt is not due. 1923 -139. 2967. A mortgagee of personal property, when the debt to secure which the mortgage was executed becomes due, may foreclose the mortgagor's right of redemption by a sale of the property, made in the manner and upon the notice prescribed by the title on "pledge," or by proceedings under the Code of Civil Procedure. 2968. Personal property mortgaged may be taken under attachment or execution issued at the suit of a creditor of the mortgagor. 2969. Before the property is so taken, the officer must pay or tender to the mortgagee the amount of the mortgage debt and interest, or must deposit the amount thereof with the county clerk or treasurer, payable to the order of the mortgagee; provided, however, that when an attachment or execution creditor presents to the officer a verified statement that the mortgage is void or invalid for reasons therein specified and delivers to the officer a good and sufficient indemnity bond in double the amount of the mortgage debt or double the value of the mortgaged property, as the officer may determine and require, the officer shall take the property, and, in the case of an execution, sell it in the manner provided by law. The bond shall be made to both the officer and the mortgagee and shall indemnify them and each of them for the taking of the property against loss, liability, damages, costs and counsel fees. Exceptions to the sufficiency of the sureties and their justification may be had and taken in the same manner as upon an undertaking on attachment. 1921-84. 2970. When the property is taken after payment or tender of deposit as provided for in section two thousand nine hundred sixty nine, and is sold under process the officer must apply the proceeds of the sale as follows: 1. To the repayment of the sum paid to the mortgagee, with interest from the date of such payment; and 2. The balance, if any, in like manner as the process of sales under execution are applied in other cases. When the property is taken after presentation to the officer of the verified statement and bond mentioned in the proviso in section two thousand nine hundred sixty-nine and is sold under process the officer must apply the proceeds of the sale as follows: 1. To the satisfaction of the amount specified in the process including interest and costs; and 2. The balance, if any, in like manner as the proceeds of sales under execution are applied in other cases. 1921-84. 2971. Sections two thousand nine hundred and fifty-seven, two thousand nine hundred and fifty-nine, two thousand nine hundred and sixty, two thousand nine hundred and sixty one, two thousand nine hundred and sixty-two, two thousand nine hundred and sixtythree, two thousand nine hundred and sixty-four, two thousand nine hundred and sixty-five, and two thousand nine hundred and sixty-six do not apply to any mortgage of a ship or part of a ship under the flag of the United States. 2972. The lien of a mortgage on a growing crop continues on the crop after severance, whether remaining in its original state or converted into another product, so long as the same remains on the land of mortgagor. 1877-89. 2973. Mortgages of personal property, other than that mentioned in section twenty-nine hundred and fifty-five, and mortgages not made in conformity with the provisions of this article, are nevertheless valid between the parties, their heirs, legatees, and personal representatives, and persons who, before parting with value, have actual notice thereof. 1905-617. 2986. Pledge is a deposit of personal property by way of security for the performance of another act. 2987. Every contract by which the possession of personal property is transferred, as security only, is to be deemed a pledge. 2988. The lien of a pledge is dependent on possession, and no pledge is valid until the property pledged is delivered to the pledgee, or to a pledge-holder, as hereafter prescribed. 2989. The increase of property pledged is pledged with the property. 2990. One who has a lien upon property may pledge it to the extent of his lien. 2991. One who has allowed another to assume the apparent ownership of property for the purpose of making any transfer of it, cannot set up his own title, to defeat a pledge of the property, made by the other, to a pledgee who received the property in good faith, in the ordinary course of business, and for value. 2992. Property may be pledged as security for the obligation of another person than the owner, and in so doing the owner has all the rights of a pledgor for himself, except as hereinafter stated. 2993. A pledgor and pledgee may agree upon a third person with whom to deposit the property pledged, who, if he accepts the deposit, is called a pledge-holder. 2994. One who pledges property as security for the obligation of another, cannot withdraw the property pledged otherwise than as a pledgor for himself might, and if he receives from the debtor a consideration for the pledge he cannot withdraw it without his consent. 2995. A pledge-holder for reward cannot exonerate himself from his undertaking; and a gratuitous pledge-holder can do so only by giving reasonable notice to the pledgor and pledgee to appoint a new pledge-holder, and in case of their failure to agree, by depositing the property pledged with some impartial person, who will then be entitled to a reasonable compensation for his care of the same. 2996. A pledge-holder must enforce all the rights of the pledgee, unless authorized by him to waive them. 2997. A pledgee, or a pledge-holder for reward, assumes the duties and liabilities of a depositary for reward. 2998. A gratuitous pledge-holder assumes the duties and liabilities of a gratuitous depositary. 2999. Where a debtor has obtained credit, or an extension of time, by a fraudulent misrepresentation of the value of property pledged by or for him, the creditor may demand a further pledge to correspond with the value represented; and in default thereof may recover his debt immediately, though it be not actually due. 3000. When performance of the act for which a pledge is given is due, in whole or in part, the pledgee may collect what is due to him by a sale of property pledged, subject to the rules and exceptions hereinafter prescribed. 3001. Before property pledged can be sold, and after performance of the act for which it is security is due, the pledgee must demand performance thereof from the debtor, if the debtor can be found. 1873-262. 3002. A pledgee must give actual notice to the pledgor of the time and place at which the property pledged will be sold, at such a reasonable time before the sale as will enable the pledgor to attend. 3003. Notice of sale may be waived by a pledgor at any time; but is not waived by a mere waiver of demand of performance. 3004. A debtor or pledgor waives a demand of performance as a condition precedent to a sale of the property pledged, by a positive refusal to perform, after performance is due; but cannot waive it in any other manner except by contract. 3005. The sale by pledgee, of property pledged, must be made by public auction, in the manner and upon the notice of sale of personal property under execution. 1909-972. 3006. A pledgee cannot sell any evidence of debt pledged to him, except the obligations of governments, states, or corporations; but he may collect the same when due. 3007. Whenever property pledged can be sold for a price sufficient to satisfy the claim of the pledgee, the pledgor may require it to be sold, and its proceeds to be applied to such satisfaction, when due. 3008. After a pledgee has lawfully sold property pledged, or otherwise collected its proceeds, he may deduct therefrom the amount due under the principal obligation, and the necessary expenses of sale and collection, and must pay the surplus to the pledgor, on demand. 3009. When property pledged is sold by order of the pledgor before the claim of the pledgee is due, the latter may retain out of the proceeds all that can possibly become due under his claim until it becomes due. 1873-262. 3010. Whenever property pledged is sold at public auction, in the manner provided by section three thousand and five of this code, the pledgee or pledge-holder may purchase said property at such sale. 1895-26. 3011. Instead of selling property pledged, as hereinbefore provided, a pledgee may foreclose the right of redemption by a judicial sale, under the direction of a competent court; and in that case may be authorized by the court to purchase at the sale. 3017. Bottomry is a contract by which a ship or its freightage is |