The pledgee of a real right, or of a negotiable instrument or other incorporeal right, is the proper plaintiff to sue to enforce the pledged right. The pledgee may enforce the entire right judicially, unless it is an obligation of the pledgor, in which event it may be enforced only to the extent of the indebtedness secured by the pledge.
Art. 696.Pledgor and Pledgee
Title III. Parties · Chapter 2. Parties Plaintiff · Amendment history unavailable · Last verified July 30, 2026
In one sentenceArticle 696 makes the pledgee of a real right, negotiable instrument, or other incorporeal right the proper plaintiff to enforce that pledged right, letting the pledgee sue for the whole right unless the underlying obligation belongs to the pledgor, in which case recovery is limited to the secured debt.
Full Text of Art. 696
Plain-English Summary
A pledge gives a creditor, the pledgee, a security interest in a right the debtor, the pledgor, owns — a real right, a negotiable instrument, or another kind of incorporeal right that cannot be physically possessed the way a car or a piece of furniture can. Article 696 makes the pledgee the proper plaintiff when it comes time to enforce the pledged right in court.
How much the pledgee can recover depends on whose obligation is at stake. If the pledged right does not represent a debt owed by the pledgor, the pledgee can enforce the entire right judicially. But if the pledged right is itself an obligation of the pledgor — the pledgor owes the debt that has been pledged as security — the pledgee's recovery is capped at the amount of the debt the pledge secures, rather than the full value of the underlying right.
Frequently Asked Questions
Who sues to enforce a pledged right in Louisiana — the pledgor or the pledgee?
The pledgee, the party holding the security interest, is the proper plaintiff under Article 696.
Can the pledgee always recover the full value of the pledged right?
Only when the pledged right is not itself an obligation of the pledgor. When it is, the pledgee can recover only up to the amount of the secured debt.
What kinds of rights can be pledged under this article?
Article 696 covers a real right, a negotiable instrument, or another incorporeal right — rights that exist independent of physical possession.
Source & verification. Article text is reproduced verbatim from
the vLex (Louisiana Code of Civil Procedure, 2026 Edition). Enacted by the Louisiana Legislature.
Last verified July 30, 2026.
· Official source
Also known as: pledgee proper plaintiff Louisianapledgor pledgee lawsuitArticle 696 Louisiana Code of Civil Procedureenforcing a pledged right in courtsecurity interest incorporeal right Louisiana