Authorisations for pledging

(1) The custodian may pledge the securities or shares of a collective holding only on the basis of an authorisation, only in connection with the granting of credit to the depositor, and only to a custodian. The authorisation must be given expressly and in text form for the particular custody transaction; it may neither be contained in the custodian's terms of business nor refer to other documents.
(2) The custodian may take re-credit against the securities or shares of a collective holding only up to the total sum of the credits it has granted to depositors. The securities or shares of a collective holding may be encumbered with liens only to secure this re-credit. The value of the pledged securities or shares of a collective holding should at least reach the amount of the credit granted to the depositor, but should not unreasonably exceed it.
(3) Where the depositor authorises the custodian only to pledge the securities or shares of a collective holding up to the amount of the credit that the custodian has granted to that depositor (limited pledging), the authorisation does not require the form under paragraph 1, second sentence. Paragraph 2, third sentence remains unaffected.
(4) Where the depositor authorises the custodian to pledge the securities or shares of a collective holding for all of the custodian's liabilities and without regard to the amount of the credit granted to the depositor (unlimited pledging), the authorisation must express that the custodian may create the lien without limitation, that is, for all of its liabilities and without regard to the amount of the credit granted to the depositor. This applies mutatis mutandis where the depositor releases the custodian from observing individual limitations under paragraph 2.
(5) A custodian authorised to pledge securities or shares of a collective holding may pass on the authorisation as given to it.