3.5 Rights and Duties of Pledgee/Pawnee

• Rights: to retain possession until the principal, interest and preservation-expenses are paid (retention extends only to the secured debt unless the agreement provides more); to recover necessary preservation expenses; on default, to appropriate or sell the goods after due notice per the agreement and law — keeping the surplus for the pawnor, or claiming the deficiency from him; to a deficiency decree where the sale proceeds fall short. • Duties: to take reasonable care of the goods (the bailee's standard — Unit 2); not to use them (use beyond preservation is breach); not to mix them with his own; to return them with accretions on redemption; to account for the proceeds of any default-sale. Memory hook — the pawnor's and pawnee's ledger: pawnor pays, discloses, redeems; pawnee keeps, cares, accounts, returns.