Q. Mr. X pledged his gold watch to Mr. Y as security for a loan. The loan was not paid. (Solved)

1. Mr. Y may appropriate the ring as his own if there is a stipulation to that effect.

2. Mr. Y must sell the ring to someone else even in a private sale.

3. Mr. Y may recover the deficiency from Mr. X if after the auction sale, a deficiency exists.

4. Mr. Y cannot recover the deficiency after the auction sale.