If the thing is encumbered by the right of a third party, then the pledge takes priority over the right, unless the pledgee, at the time of acquisition of the pledge, is not in good faith in relation to the right. The provisions of section 932 (1) sentence 2, section 935 and of section 936 (3) apply accordingly.
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Book 3 · Law of property › Title 1 · Pledge of movable things › Section 1208
Acquisition of priority of rank in good faith
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