Arias, Eunice Grace Booc BSA-IV

ANTICHRESIS
-contract of antichresis the creditor acquires the right to receive the fruits of an immovable of
his debtor, with the obligation to apply them to the payment of interest, if owing, and
thereafter to the principal of his creditor.
A. Characteristics
1. Accessory Contract- it secures the performance of a principal obligation
2. Formal Contract- it must be specified in writing to be formal
B. Antichresis vs. Pledge
1. Antichresis refers to real property while pledge, to personal property.
2. Antichresis being consensual contract, is perfected by mere consent, while pledge, being
real contract, is perfected by delivery of the thing pledged.
C. Antichresis vs. Real Mortgage
1. In antichresis, the property is delivered to the creditor, while in mortgage, the debtor usually
retains possession of the property.
2. In antichresis, the creditor acquires the right to receive fruits of the property, while in
mortagage, the creditor does not have any right to receive the fruits
3. In antichresis, the creditor, unless there is a stipulation to the contrary, is obliged to pay the
taxes and charges upon the estate, while in mortgage, the creditor has no such obligation.

Article 2133. The actual market value of the fruits at the time of the application thereof to the
interest and principal shall be the measure of such application.
Article 2134. The amount of the principal and of the interest shall be specified in writing;
otherwise, the contract of antichresis shall be void.
D. Obligations of antichretic creditor
1. Payment of all taxes and charges upon the estate
2. Application of the fruits of the estate
Article. 2136. The debtor cannot reacquire the enjoyment of the immovable without first
having totally paid what he owes the creditor.
- The property delivered stands as a security for the payment of the obligation of the
debtor in antichresis. Hence, the debtor cannot demand its return until the debt is
totally paid.

E. Remedy of creditor in case of nonpayment of debt

If the debt is not paid, it is clear that the creditor cannot take ownership of the property
since there is no transfer of ownership but only the right to enjoy the fruits of it. However, the
creditor may:
1. Bring an action for specific performance;
2. To petition for the sale of the real property as in a foreclosure of mortgage

CHATTEL MORTGAGE
-Contract by virtue of which personal property is recorded in the chattel mortgage register as a
security for the performance of an obligation

A. Characteristics
1. Accessory contract- it is for the purpose of securing the performance of a principal obligation
2. Formal contract- for its validity, registration in the Chattel Mortgage Register is indispensable
3. Unilateral contract- it produces only an obligation on the part of the creditor to free the thing
from encumbrance on fulfillment of the obligation

B. Chattel Mortgage vs. Pledge

Chattel Pledge
Delivery of the personal property not Delivery is necessary
necessary
Registration of the property is Registration is not necessary
required
Procedure of sale of the thing given as Found in Art. 2112 of Civil Code
security
 Property is foreclosed, excess over Debtor is not entitled to excess
the amount due goes to the debtor
In case of deficiency, creditor is In case of deficiency, creditor is not
entitled to recover from the debtor entitled to recover from debtor

C. Similarities between Chattel Mortgage and Pledge

1. Both are executed to secure performance of a principal obligation
2. Both are constituted only on personal property
3. Both are divisible
4. Both constitute a lien on the property
5. In both cases, the creditor cannot appropriate the property to himself in payment of the debt
6. In both cases, when the debtor defaults, the property must be sold for the payment of the
creditor
7. Both are extinguished by the fulfillment of the principal obligation or the destruction of the
property pledged or mortgaged.
D. Offenses involving chattel mortgage
1. Knowingly removing any personal property mortgage under the Chattel Mortgage Law to any
province or city other than the one in which it was located at the time of the execution of the
mortgage without the written consent of the mortgagee
2. Selling or pledging personal property already pledged

E. Foreclosure of Chattel Mortgage

- the mortgagee must discharge the mortgage in the manner provided by law otherwise he may
be held liable for damages by any person entitled to redeem the mortgage

F. Right of Mortgagee to Recover Deficiency

1. creditor may maintain an action for the deficiency
2. if the chattel mortgage is constituted as security for the purchase of personal property
payable in installments, no deficiency judgment can be asked
 CHATTEL MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

I, ( N a me o f M o r t g a g o r ) of legal age, single/married to____________________ with postal address

at _____________________________hereinafter known as the MORTGAGOR, and
_________________________________ of legal age, single/married to ______________________ with postal address at
_______________________________ hereinafter known as the MORTGAGEE, witnesseth:

That the MORTGAGOR is indebted unto the MORTGAGEE in the sum of (Amount in Words)
(000,000.00), Philippine Currency, receipt of which is acknowledged by the MORTGAGOR upon the signing of
this instrument, payable within a period of _____ years, with interest thereon at the rate of (___) % per
annum;

That for, and consideration of , this indebtedness, and to assure the performance of said obligation to pay,
the MORTGAGOR hereby conveys by way of CHATTEL MORTGAGE unto the MORTGAGEE, his
heirs and assigns, the following personality now in the possession of said MORTGAGOR

MAKE : MOTOR NO. :

SERIES : SERIAL/CHASSIS NO. :
TYPE OF BODY : PLATE NO. :
YEAR MODEL : FILE NO. :

That the condition of this obligation is that should the MORTGAGOR perform the obligation to pay the
hereinabove cited indebtedness of (Amount in Words) (000,000.00) together with accrued interest thereon, this chattel
mortgage shall at once become null and void and of no effect whatsoever, otherwise, it shall remain in full force and
effect.

IN WITNESS WHEREOF, the parties have hereunto set their hands, this ____day of ____________ 20___ at
____ Philippines.

_______________________________ _______________________________
MORTGAGOR MORTGAGEE

IN THE PRESENCE OF:

_______________________________ _______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

________________________ ) S.S
BEFORE ME, personally appeared:

Name CTC Number Date/Place Issued

(Name of Mortgagor) 10000000 Jan 01, __ / Quezon City

(Name of Mortgagee) 10000000 Jan 11, __ / Las Pinas
City

Known to me and to me known to be the same persons who executed the foregoing instrument
and acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL, on the date and place first above written.

Notary Public

Doc. No.______;
Page No. ______;
Book No.______;
Series of 20__.

Note: Chattel mortgages requires an Affidavit of Good Faith attached to it -sample below:

AFFIDAVIT OF GOOD FAITH

We, the undersigned MORTGAGOR AND MORTGAGEE hereby jointly and severally swear that
we executed the foregoing Chattel Mortgage in order to secure the indebtedness therein and
for no other purpose or purposes contrary to law.

____________________________ _____________________________
MORTGAGOR MORTGAGEE
NOW ALL MEN BY THESE PRESENTS:

This ANTICHRESIS CONTRACT is made and executed at the City of _____, this day of
_______________, 20__, by and between:

(NAME OF DEBTORs), of legal age, single/married to (Name of spouse if any), Filipino, and with
residence and postal address at (Address), hereinafter referred to as the DEBTOR.

-AND-

(NAME OF CREDITORS), of legal age and with residence and postal address at (Address),
hereinafter referred to as the CREDITOR.

WITNESSETH; That

WHEREAS, the DEBTORS is the owner of a residential property situated at (Address of property to
be );

WHEREAS, the CREDITORS acquires the right to receive the fruits of this property of his debtor,
with the obligation to apply them to the payment of the interest, if owing, and thereafter to the
principal of his credit

NOW THEREFORE, for and in consideration of the foregoing premises, the DEBTOR and CREDITOR
hereby accepts this arrangement subject to the following:

PRINCIPAL: Below are the PRINCIPAL amounts owed by debtor to the corresponding creditors
respectively,

____________
____________

ANNUAL INTEREST : shall be_____ of the principal amount.

CREDITORS RIGHT OF ENTRY OR ABODE: The CREDITOR has the right of entry or to live in this
property with or without consent of the DEBTOR unless CREDITOR has been fully paid by the
DEBTOR.

CONTRACT CHANGES OR EXPIRY: The stipulations of this contract shall only expire or be changed
upon mutual written agreement of both contracting parties.

This contract of Antichresis shall be valid and binding between the parties, their successors-in-
interest, and assigns.

IN WITNESS WHEREOF, parties herein affixed their signatures on the date and place above
written.

(Name of DEBTOR) (Name of CREDITOR)

Signed in the presence of:
_____________________________ ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

Name CTC Number Date/Place Issued

(Name of DEBTOR) 10000000 February 24, 20__ / Cavite City
(Name of CREDITOR) 10000000 January 07, 20__ / Makati

Known to me and to me known to be the same persons who executed the foregoing instrument
and acknowledged to me that the same is their free and voluntary act and deed.

This instrument consisting of ____ page/s, including the page on which this acknowledgement is
written, has been signed on each and every page thereof by the concerned parties and their
witnesses, and and sealed with my notarial seal.

WITNESS MY HAND AND SEAL, on the date and place first above written.
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