Escolar Documentos
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Kinds
Conventional or voluntary- constituted by the mutual consent of
the pledgor & the pledgee
o Requisites
Constituted to secure the fulfillment of a principal
obligation
Pledgor be the absoulute owner of the thing pledged
Person constituting the pledge has the free disposal of
his property, and the absence thereof, that he be legally
authorized for the purpose
The thing pledged be placed in the possession of the
creditor, or of a third person by common agreement
Perfected upon the delivery of the thing
Must be actual delivery
No delivery, pledge is void
o Object of the pledge
all movables w/in the commerce of men
incorporeal rights evidenced by nego instruments, bill of
lading, shares of stocks etc.
o Form of pledge
Between parties
any form
As regards to third persons
must be in public instrument
o Extent of pledge(shall cover the ff:)
The thing pledged
Fruits, income, dividends or interests earned or
produced by the thing pledged, unless there is a
stipulation excluding them
Offspring, if the thing pledged is an animal, unless there
is a stipulation excluding them
o Rights of the debtor/ pledgor
To alinate, w/ the consent of the pledgee, the thing
pledged
To ask that the thing pledged be judicially or extra
judicially deposited if it is used w/o authority for a
purpose other than its preservation
To continue to be the owner of the thing pledged unless
it is expropriated
To ask for the return of the thing pledged after he settle
his obligation
To require that the thing pledged be deposited w/ a
third person if it is in danger of being lost or impaired
through the negligence or willful act of the pledgee
To demand the return the thing pledge upon offering
another thing in pledge, if there are reasonable grounds
to fear the destruction or impairment of the thing
pledged w/o the fault of the pledgee
o Obligations of the debtor/pledgor
To pay the debt @ its interests, with expenses in a
proper case, when they are due
To pay damages that the pledgee may suffer by reason
of the flaws of the thing pledged, if he was aware of the
flaws but did not advise the pledgee of the same
o Rights of the creditor/pledgee
to retain the possession of the thing pledged until the
debt is paid
to demand reimbursement of the expenses made for
the preservation of the thing pledged
to bring actions w/c pertain to the owner of the thing
pledged in order to recover it from, or defend it against
third persons
to use the thing pledged if he is authorized to do so, or
when its use is necessary for the preservation of the
thing
if he is deceived of the substance of the thing pledged,
he may either
claim that another thing may be given to him
demand immediate payment
to cause the thing pledged at a public sale
to collect & receive the amount due if the thing pledged
is a credit w/c becomes due before it is redeemed, & to
apply the same to the payment of his claim (exact
amount of debt only)
to sell the thing pledged upon default of the
debtor/pledgor
o Obligations of the creditor/pledgee
To take care of the thing pledged w/ a diligence of a
good father of a family
To be liable for the loss or deterioration of the thing
pledged unless it is due to fortuitous event
Not to deposit the thing pledge w/ a third person,
unless authorized
To be responsible for the acts of his agents or
employees w/ respect to the thing pledge
Not to use the thing pledge, except when:
He is authorized by the owner
The use of the thing is necessary for its
preservation
To deliver the surplus after paying his claim from what
he has collected on a credit that was pledged & w/c has
become due before it is redeemed
o Rights of a third person who pledges his own movable
property to secure the debt of another
To be indemnified by the debtor if he pays the creditor
To be subrogated to all the rights of the creditor against
the debtor if he pays the creditor
To be released from liability in the ff. cases
o Extinguishment of pledge
Indirect Cause
When the principal obligation is extinguished, the
pledge, as an accessory to the contract is also
extinguished
Direct Cause
Return by the pledgee of the thing pledged to the
pledgor or owner
Renunciation or abandonment in writing by the
pledgee of the pledge
Sale of the thing pledge
Appropriation of the thing pledge
Legal- constituted to secure the fulfillment of a principal obligation
–right of person to retain a thing until he receives payment of
his claim
o Examples
Possessory lien by a possessor in good faith
Possessory lien of worker
Depositary’s right of retention
o Excess or deficiency of proceeds of sale
Excess
Conventional pledge- excess belongs to creditor
Legal pledge- excess shall be delivered to debtor
Deficiency
Conventional- creditor is not entitled to recover
the deficiency
Legal- creditor is entitled to recover the
deficiency
MORTGAGE 4/28/2018 3:23:00 AM
Real Mortgage
Requisites
o Constituted to secure the fulfillment of a principal obligation
o Mortgagor be the absolute owner of the thing mortgaged
o Person constituting the mortgage must have the free disposal
of his property/ legally authorized for that purpose
o Must be recorded in the Registry of Property
Characteristics
o Accessory
o Indivisible
o Inseparable
o Real right
o Real property
Kinds of real mortgage
o Conventional or voluntary
o Legal
o Equitable mortgage
Objects of real mortgage
o Immovable
o Alienable rights in accordance w/ the laws
Form of real mortgage
o Between the parties
Any form
o As regards to third persons
Must be recorded in registry of propery
Extent
o Property mortgaged
o Natural accessions
o Improvements
o Growing fruits
o Rents & income not yet received when the obligation becomes
due
o Indemnity granted
Stipulation prohibiting alienation & second mortgage
o Alienation- void
o Second mortgage- valid if registered in Torrens system
Mortgagor may execute a second mortgage w/o the
consent of the mortgagee
Foreclosure
o Remedy available to the mortgagee by which he subjects the
property mortgaged to the satisfaction of the obligation
secured
o Grounds
When principal obligation is not paid when due
When there is any violation of any condition, stipulation
or warranty by the mortgagor
o Kinds
Judicial foreclosure
Extra-judicial foreclosure
o Senior mortgages & junior mortgages
o Redemption
o Kids of redemption
Equity redemption- not less than 90 days
Right of redemption
CHATTEL MORTGAGE 4/28/2018 3:23:00 AM
Requisites
Constituted to secure the fulfillment of a principal obligation
Mortgagor is the absolute owner of the thin mortgaged
Person constituting the mortgage must have the free disposal of his
property, & is legally authorized for that purpose
Must be recorder in chatter mortgage register
Object
Only personal property
Form
Between the parties- must be recorded in the Chattel mortgage
register of the province where the mortgagor resides & the province
where the property is located, if different form the residence of
mortgagor
o Motor vehicles- chattel mortgage register & LTO
o Shares of stock-chattel mortgage register in the province of
the corporation & the domicile of mortgagor
o Vessel- office of the collector of customs at port of entry
As regards to third persons
o Affidavit of good faith must be attached to the Deed of
Chattel mortgage & must be recorded in chatter mortgage
register
Foreclosure
Grounds
o When principal obligation is not paid when due
o When there is any violation of any condition, stipulation or
warranty by the mortgagor
Kinds
o Judicial
o Extra-judicial
Distribution of proceeds
o Cost of sale
o Claim of the person foreclosing the mortgage
o Claims of the persons holding subsequent mortgages in their
order
o Balance, if any, shall be paid to the mortgagor
Two or more mortgages
o Senior mortgagees
o Junior mortgagees
deficiency