PLEDGED MORTGAGE ANTICHRESIS CHATTEL MORTGAGE

(Real mortgage)
Characteristics  Real contract  Real contract  Accessory  Accessory contract
 Accessory contract  Accessory contract contract  Formal contract
 Unilateral contract  Unilateral contract  Formal  Unilateral contract
 Subsidiary contract  Subsidiary contract contract
 Consensual
contract
Object in which it  Movables  Immovables Fruits of the  Movables (crops and
is constituted  Incorporeal rights  Alienable rights immovable large cattle – Chattel
(evidenced by documents imposed upon Mortgage Law)
whether negotiable or not immovable
)
Subject matter Personal property Real property Real property Personal property

Manner of By Delivery to the creditor or By Consent By Consent Must be in writing

Perfection third person by common
agreement (real contract) Note: delivery of the thing Recorded in the Note: deliver of the
mortgaged is NOT Chattel Mortgage personal property is
necessary. (consensual) Register NOT necessary

Kinds  Voluntary/ Conventional  Voluntary Mortgage

Pledge  Legal Mortgage
 Legal Pledge  Equitable Mortgage
Essential  Constituted to secure  Constituted to secure
Requisities fulfilment of a principal fulfilment of a principal
obligation obligation
 Pledgor is absolute owner  Mortgagor is absolute
 Pledgor has free disposal owner
of property or has legal
authority
 Thing pledged may be  Mortgagor has free
alienated disposal of property or
has legal authority
 Thing pledged may be
alienated
 PLEDGE REAL MORTGAGE
Characteristics  Real contract  Real contract
 Accessory contract  Accessory contract
 Unilateral contract  Unilateral contract
 Subsidiary contract  Subsidiary contract
Nature of Contract Real Consensual
Form Public Instrument Registration
- For binding the third person - For binding the third person

Obligations it can secure All kinds of Obligation All kinds of Obligation

Essential Requisites
( pure or subject to suspensive or resolutory
condition )
 Constituted to secure fulfilment of a
principal obligation
 Pledgor is absolute owner
 Pledgor has free disposal of property or
has legal authority
 Thing pledged may be alienated
( pure or subject to suspensive or resolutory
condition )
 Constituted to secure fulfilment of a
principal obligation
 Mortgagor is absolute owner
 Mortgagor has free disposal of property or
has legal authority
 Thing pledged may be alienated

Object in which it is Movables Immovable

constituted
Constitution of the contract
on the same object
Manner of perfection
To bind against 3rd person
Thing can be pledged ONCE Mortgagor can execute another mortgage on
same property
By delivery to the creditor/ pledgee or to 3rd By consent
person NOTE: Delivery is NOT necessary
Must be in PUBLIC INSTRUMENT showing: Must be REGISTERED
  Description of the thing pledged
 Date of the pledge

Recovery of Deficiency Cannot be recovered even if there is a Can be recovered

Excess of the Proceeds of Sale
When appropriation is
allowed
Alienation of the thing or
(To sell the thing )
Promise or Agreement to
constitute the thing
Use of the thing/ security
stipulation:
UNLESS it is a legal pledge
Retained by the pledgee
UNLESS: there is a stipulation giving it to the
pledger
If the thing pledged is NOT SOLD in TWO (2)
public auctions
Must be with the CONSENT of the pledgee
Gives rise ONLY to PERSONAL RIGHT
Use is NOT ALLOWED
UNLESS: authorized by the owner and when
the use is necessary for its preservation
Belongs to the mortgagor EVEN if there is NO
STIPULATION to that effect
Appropriation is NOT ALLOWED
May be alienated EVEN WITHOUT THE
CONSENT of the mortgagee.
Gives rise ONLY to PERSONAL RIGHT
Use is IMPOSSIBLE since the property is not in
the possession of the mortgagee.
 DIFFERENCES
PLEDGE REAL MORTGAGE
Object on which it is Movables Immovables
constituted
Delivery Property is delivered to the pledgee or by Delivery is NOT necessary
common consent to a 3rd person

To bind against 3rd person Pledge must appear on a PUBLIC Mortgage must be REGISTERED
INSTRUMENT:
a. Description of the thing pledged
b. Date of the pledged

To sell the thing May sell the thing pledged with CONSENT of May sell the property mortgaged EVEN WITHOUT
the pledgee the consent of the mortgagee

SIMILARITIES
1. Constituted to secure fulfilment of a principal obligation
2. Pledgor or mortgagor is absolute owner
3. Pledgor or mortgagor has free disposal of property or has legal authority
4. Thing pledged or mortgaged may be alienated
5. The creditor cannot appropriate the things given by way of pledge or mortgage or dispose of them
6. Indivisible, even if the obligation is joint and not solidary.
7. May secure all kinds of obligations: pure or subject to suspensive or resolutory condition
8. Promise to constitute pledge or mortgage gives rise only to PERSONAL RIGHT and creates NO REAL RIGHT in the property.
 DIFFERENCES
PLEDGE ANTICHRESIS
Subject matter Personal property Real property

Manner of perfection By delivery of the thing pledged (real contract) By mere consent (consensual contract)

SIMILARITIES
1. Debtor loses control of the subject matter of the contract

DIFFERENCES
ANTICHRESIS REAL MORTGAGE
Possession of the property Property is delivered to the creditor Debtor usually retains possession of the property

Right to Receive the Fruits Creditor acquires the right to receive the fruits Creditor does not have any right to receive the
of the property fruits

Payment of Taxes Creditor is obliged to pay the taxes and Creditor has no such obligation
charges upon the estate
UNLESS there’s a stipulation to the contrary.

SIMILARITIES
1. Real Property
 DIFFERENCES
PLEDGE CHATTEL MORTGAGE
Delivery Delivery is necessary Delivery of Personal property is NOT necessary

Registration To register in the REGISTRY OF PROPERTY is To register in CHATTEL MORTGAGE REGISTER is

NOT necessary required by law
Excess in Foreclosure Sale Debtor is not entitled to the excess UNLESS Excess goes to the DEBTOR
there is a stipulation
Note: except in legal pledge
Recovery of Deficiency Creditor is NOT entitled to recover the Creditor is entitled to recover the deficiency from
deficiency in all cases the debtor
EXCEPT: if the chattel mortgage is a security for
the purchase of personal property in installments

SIMILARITIES
1. Executed to secure performance of a principal obligation
2. Constituted ONLY on personal property
3. Indivisible
4. Constitute a lien on the property
5. Creditor cannot appropriate the property to himself in payment of the debt
6. When the debtor defaults, the property must be sold for the payment of the creditor
7. Extinguished by the fulfilment of the principal obligation or the destruction of the property pledged or mortgaged

Subject matter
Object of the contract
Kind of Cause
Manner of Perfection
Ownership of the thing
Principal Purpose
Necessity of the Ownership of
Bailor/Lender/Depositor
Who suffers the Loss
Who shoulders to the Ordinary
Expenses for the Use or
Preservation of the thing
To demand the return of the
thing
COMMODATUM
Not consumable
Movable or Immovable;
Non-consumable but may be
consumable but non-fungible
Essentially gratuitous
Perfected by delivery
Retained to the lender
Use ;(safekeeping is incidental)
Ownership is not necessary as long
as authorized to alienate the right to
use the property
Bailor (since he is the owner)
Bailee
Bailor may demand its return
BEFORE the expiration of the term in return BEFORE the lapse of the AT WILL
case of urgent need
MUTUUM
Money or Consumable Thing
Only money / fungible thing
May be gratuitous, onerous,
with stipulation to pay interest Compensation (bilateral
Perfected by delivery
Transferred to the borrower
Consumption
Ownership is necessary
Borrower
Borrower
Lender may NOT demand its Depositor may demand its return
term agreed upon.
DEPOSIT
Only movable or personal
(Judicial);
Movable and Immovable
(Extrajudicial)
Gratuitous (unilateral contract;
contract)
Perfected by delivery
Retained to the depositor
Safekeeping
Generally must ne the owner but
not necessarily
Depositor (if without the fault of
the depositary)
Depositor (if the deposit is
gratuitous);
Depositary (if onerous)
 COMMODATUM MUTUUM DEPOSIT
Obligation of the Borrower Borrower must RETURN the same Borrower need ONLY TO PAY
thing loaned the same amount of the same
kind and quality
Kind of Property Real or Personal property Only to Personal property
In Character Purely Personal Not Purely Personal