State Act
Section 347
Art. 347 – The pledges created in terms of article 279 shall be sold in the following manner, when at the proper time the amount secured by the pledge, has not been paid. § 1. The clerk of the comunidade shall announce the public sale, inviting the prospective buyers to be present in the administration office of comunidade, on the date and hour indicated by the administrator. § 2. The advertisement shall indicate the type of the securities, its metal and value and the corresponding number of certificates of the shares and the issuing comunidade. § 3. On the day fixed for the sale, in the presence of the administrator, the president of the managing committee, the attorney and the clerk of the comunidade, the items shall be awarded, each one of the objects separately, or all together, to whoever offers higher bid. The clerk of the comunidade shall write a report in the book of records, signed by all of them, by the bidder and by two witnesses. § 4. The pledge put for auction shall not be delivered to successful bidders without prior payment of the respective price, and in case it not paid within three days, a new auction shall be held, and the original bidder shall be subject to penalties provided in the article 904 of the Code of Civil Procedure. § 5. From the amount of the bid, the interest and the emoluments due from the proceeds of the auction shall be deducted and the surplus shall be returned to the debtor.