Pledge Guaranty Chattel Mortgage Real Mortgage Suretyship Antichresis

Definition A contract by virtue of A person called a A contract by A contract Exists when one The creditor
which the debtor guarantor binds virtue of which, whereby the person (principal acquires the right
delivers to the creditor himself to the personal property debtor secures to or obligor) has to receive the
or the third person a creditor to fulfil is recorded in the the creditor the undertaken an fruits of an
movable (Art 2094), a the obligation of Chattel Mortgage fulfilment of a obligation and immovable of his
document evidencing a principal debtor Registry as a principal another person debtor, with an
incorporeal rights (Art. in case the latter security for the obligation, (surety) is also obligation to
2095) for the purpose should fail to do performance of an specially under a direct and apply them to the
of securing the so (Art. 2047). obligation. subjecting to such primary obligation payment of the
fulfilment of a principal security or other duty to a interest, if owing,
obligation with the immovable third person and thereafter to
understanding the time property or real (obligee), who is the principal of
the obligation is rights over entitled to but one his credit (Art.
fulfilled, the thing immovable performance, and 2132).
delivered shall be property which as between them
returned with all its obligation shall be the two are bound,
fruits and accessions. satisfied with the the one rather
proceeds of the than the other
sale or rights in should perform.
case the said
obligation is not
complied with at
the time
stipulated.

Characteristic Real, accessory, Accessory, Accessory, formal, Real, subsidiary, Solidary Accessory, formal
unilateral, subsidiary subsidiary and unilateral accessory,
conditional, unilateral
unilateral
Purpose Security for the Security Security Security Security Security
fulfilment of an
obligation
Parties to the Pledgor Guarantor Mortgagee Mortgagee Surety/principal Debtor
contract Pledgee Principal and Mortgagor Mortgagor Creditor Creditor
Exception: third creditor.
persons who are not Exception: third
parties to the principal person (Art.
obligation, may serve 1257) whoever
the latter by pledging pays in behalf of
or mortgaging their the debtor
own property without
knowledge or
against the will of
the latter, cannot
compel the
creditor or
subrogate him in
his rights such as
those arising
from a mortgage,
guaranty or
penalty (Art.
1236) whoever
pays for another
may demand
from the debtor
what he has paid,
except that if he
paid without
knowledge or
against the will of
the debtor he can
recover only in so
far as the
payment has
been beneficial to
the debtor.
Subject Matter 1. All movables which Movables (Art Immovables, Immovable (Art
are within the 2124), alienable rights in 2132), fruits
commerce of man. Shares of stock, accordance with creditor acquires
Provided they are interest in the laws, imposed the right to
susceptible of business, upon immovables receive the fruits
possession (art.2094) machinery treated (Art 2124), fruits,
Fruits: the creditor by the parties as natural accessions,
shall compensate what personal property improvements,
she receives with those subsequently growing fruits, and
who owe him, or in so installed on a the rents or
far as the amount may leased land, income not yet
exceed that which is vessels, motor received when the
due, he shall apply it vehicles, house of oblidation
to the principal. mixed materials, becomes due,
Unless, there is an house intended to amount of
stipulation to the be demolished, indemnity granted
contrary, the pledge house built on or owing to the
shall extend to the rented land, house proprietor (Art
interest and earnings of strong materials 2127).
of the right pledge
(art. 2102).
2. Incorporeal rights
(Art 2095).

Form of contract Does not require any The law does not Must be registered Must be recorded No specified form Must be in writng,
form of contract, specify any form to the Chattel in the registry of of contract otherwise the
except in case to affect of contract mortgage registry property, provided contract is void.
third persons, it must (Art 2140) if the instrument is
be in public instrument not recorded, the
(2096) mortgage was
nevertheless
 binding between
the parties
(Art2125).

Transfer of Ownership is retained Ownership is Ownership is Retained by the

ownership by the pledgor retained by the retained by the debtor
mortgagor mortgagor
Transfer of The thing pledged is Remains in the Remains in the Transferred to
possession placed in the possession of the possession of the creditor
possession of creditor, mortgagor mortgagor
or of third person by
common agreement
(Art. 2093)

Preservation and The creditor shall take

expenses care of the thing
pledged with the
diligence of a good
father of a family; he
has the right to the
reimbursement of the
expenses made for its
preservation, and is
liable for its loss or
deterioration (Art
2099)

Appropriation The creditor cannot The creditor cannot The creditor Creditor cannot
appropriate the things appropriate the cannot appropriate appropriate the
given, any stipulation things given, any the things given, thing pledged but
to the contrary is void stipulation to the any stipulation to only its fruits for
(Art 2087) contrary is void the contrary is void the payment of
(Art 2087) (Art 2087) his credit.
Effects of the The thing in which the Guarantor is The creditor may The creditor may Surety is directly, Does not acquire
obligation when it pledge or mortgage secondarily or cause the cause the primarily and the ownership of
becomes due consist maybe subsidiarily liable, mortgaged mortgaged equally bound with the real estate for
alienated for the he contracts to property to be property to be the principal as none payment of
payment of the pay if by the use foreclosed and foreclosed and original promisor the debt within
creditor (Art 2087) of due dliligence apply the proceeds apply the proceeds although he the period agreed
the debt cannot thereof to his thereof to his possesses no direct upon. Creditor
be paid by the credit credit or personal may petition with
principal after the interest over the the court for the
creditor has latter’s obligation payment of the
exhausted all the nor does he debt or the sale
properties of the receive any benefit of the real
principal debtor there from property.
and after
resorting to all
legal remedies