Article 1655. Security with or without time limits

(1) If a time limit has been agreed, directly or indirectly, for the resort to a security, the security provider remains liable even after expiration of the time limit, provided the creditor had demanded performance according to Article 1651 para. (1) or Article 1652, at a time when the creditor was entitled to submit the demand, but before expiration of the time limit for the security. The provisions of Article 1643 para. (3) apply accordingly. The security provider’s obligation is limited to the amount the creditor could have demanded on the last day of the time limit.
(2) Where a security does not have an agreed time limit, the security provider may set such a time limit by giving notice of at least 3 months to the other party. The security provider’s liability is restricted to the amount which the creditor could have demanded as of the date set by the security provider. The provisions of this paragraph do not apply if the security is given for specific purposes.