(1) The auction of the pledged item is permitted only after the pledgor has been warned of it; the warning may be omitted if the pledged item is vulnerable to spoilage and postponement of the auction entails danger. In the event of a reduction in value, it is necessary, apart from the warning, for the pledgee to determine a suitable time limit for the pledgor to provide other security and that this has expired.
(2) The pledgee is to notify the pledgor of the auction without undue delay; in the event of failure to do so, they are obliged to pay damages.
(3) The warning, the determination of a time limit and the notification may be omitted if they are inadvisable.