Article 344. Consequences of loss or damage to the pledged property.
1. The pledger shall bear the risk of accidental loss or accidental damage to the pledged property, unless otherwise provided by the contract of pledge. 2. The pledgee is responsible for the complete or partial loss or damage to the pledged item transferred to him, unless he proves that he can be released from liability in accordance with Article 401 of this Code. The mortgagee is responsible for the loss of the collateral in the amount of its actual value, and for its damage - in the amount by which this value has decreased, regardless of the amount in which the collateral was evaluated during its transfer to the mortgagee. If, as a result of damage to the object of pledge, it has changed so much that it cannot be used for its intended purpose, the pledger has the right to refuse it and to demand compensation for its loss. The contract may provide for the obligation of the pledgee to compensate the pledgor for other damages caused by the loss or damage of the subject of pledge. A pledger who is a debtor under an obligation secured by a pledge has the right to set off the claim to the pledgee for compensation for losses caused by the loss or damage of the subject of the pledge in order to pay off the obligation secured by the pledge.
References to other articles of chapter 23. Ensuring the fulfillment of obligations: