Art 2102: Right of pledgee to compensate earnings of pledge with the debt Rules for compensation of earnings of pledge: Apply the interest/dividends/income to the interest due (to pledgee) If no interest, apply it to principal General Rule; Pledge shall extend to the interest and earnings of the right pledged Exception: contrary stipulation In a pledge of animals, the owner retains ownership of the offspring BUT they are also subject to the pledge IF there is no stipulation to the contrary Ex: A borrowed from C 10,000 at 12% interest. He pledged his certificate of stocks as security. If the stocks earn dividends, they are subject to the pledge if there is no stipulation to the contrary. C shall apply the dividends to the interest, if any. If none are owing, then C must apply the dividends to the 10,000