Professional Documents
Culture Documents
Lease - Accessory Cs - Credits
Lease - Accessory Cs - Credits
certain in money or its equivalent (rent) (5) Justices, judges, prosecuting attorneys, clerks of superior
• it’s commodatum when the grant is gratuitous and inferior courts, and other officers and employees
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• it’s an innominate contract when the consideration is delivery connected with the administration of justice, the property
of another thing or rendition of service and rights in litigation or levied upon an execution before
• but lessor has a right (usufructuary or lessee) or at least an of any litigation in which they may take part by virtue of
authority (agent of owner), otherwise contract is void due to their profession;
cause/object of w/c did not exist at time of transaction (6) Any others specially disquali ed by law.
• preferred at moment there is a meeting of minds on thing and When Foreigner is investing in the PH
cause and consideration to constitute the contract
• lease shall be for a period not > 50 years
SUBJECT MATTER • renewable once for a period of not > 25 years
GR: consumables NOP • shall be used solely for purpose of investment upon the
Art. 1645. - Consumable goods cannot be the subject matter of mutual agreement of the parties
XPNs a contract of lease, except when they are merely to be
(i) just for sho
exhibited or when they are accessory to an industrial When Foreigner is not investing in the PH
(ii) accesssory to
industrial establishment establishment.
• he is allowed to lease private lands in PH for max period of
25 years
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mutual agreement
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Manager w/o special powe Art. 1647. - If a lease is to be recorded in the Registry of
Property, the following persons cannot constitute the same
When Lease of Real Property to
Person is > 1 Year
without proper authority: the husband with respect to the wife’s
paraphernal real estate, the father or guardian as to the
property of the minor or ward, and the manager without special
power.
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(8) To lease any real property to another person for more than
one year.
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Rule
puercahser of land Art. 1676. - The purchaser of a piece of land which is under a
under lease not
recorded in Registry
lease that is not recorded in the Registry of Property may • lessee cannot assign lease
may terminate lease, terminate the lease, save when there is a stipulation to the
unless (i) S2C in sale, contrary in the contract of sale, or when the purchaser knows XPNs
or (ii) purcahser of the existence of the lease.
knows of the lease’s
existence If the buyer makes use of this right, the lessee may demand • assignment is w/ lessor’s consent
that he be allowed to gather the fruits of the harvest which • stipulation in contract allowing assignment
should buyer opt for corresponds to the current agricultural year and that the vendor
this right, lessee may indemnify him for damages su ered. RIGHT TO SUBLEASE
demand right to gather
fruits and indemnity
If the sale is ctitious, for the purpose of extinguishing the
lease, the supposed vendee cannot make use of the right Art. 1650. - When in the contract of lease of things there is no
if sale is fake, granted in the rst paragraph of this article. The sale is express prohibition, the lessee may sublet the thing leased, in
supposed vendee (to presumed to be ctitious if at the time the supposed vendee whole or in part, without prejudice to his responsibility for the
extinguish lease)
cannot make use of the demands the termination of the lease, the sale is not recorded performance of the contract toward the lessor.
right granted in the Registry of Property.
Rule
TERM OF LEASE
• lessee allowed to sublet
Term Agreed Upon
XPN
• but no lease for > 99 years shall be valid
• expressly prohibited in contract
For All Time Necessary for Gathering of Fruits
provided it’s for a rural
land w/ unfixed Sublessee’s Duties
duration for its lease Art. 1682. - The lease of a piece of rural land, when its duration
has not been xed, is understood to have been for all the time Bound to Lessor re Acts for Use and Preservation of Thing
necessary for the gathering of the fruits which the whole estate
leased may yield in one year, or which it may yield once, Art. 1651. - Without prejudice to his obligation toward the
although two or more years may have to elapse for the sublessor, the sublessee is bound to the lessor for all acts
purpose. which refer to the use and preservation of the thing leased in
the manner stipulated between the lessor and the lessee.
Year to Year
Subsidiarily Liable for Rent
IF annual ang rent Art. 1687. - If the period for the lease has not been xed, it is
agreed upo understood to be from year to year, if the rent agreed upon is Art. 1652. - The sublessee is subsidiarily liable to the lessor for
annual; from month to month, if it is monthly; from week to
pweds rin any rent due from the lessee. However, the sublessee shall not
week, if the rent is weekly; and from day to day, if the rent is to
(i) month to mont be responsible beyond the amount of rent due from him, in
(ii) week to wee be paid daily. However, even though a monthly rent is paid, and accordance with the terms of the sublease, at the time of the
(iii) day to day no period for the lease has been set, the courts may x a extra-judicial demand by the lessor.
longer term for the lease after the lessee has occupied the Payments of rent in advance by the sublessee shall be deemed
premises for over one year. If the rent is weekly, the courts may
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possession for over six months. In case of daily rent, the courts custom of the place.
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may also x a longer period after the lessee has stayed in the
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• during lease Art. 1670. - If at the end of the contract the lessee should
• on the leased premises continue enjoying the thing leased for fteen days with the
• to keep it suitable for use to w/c it has been devoted acquiescence of the lessor, and unless a notice to the contrary
by either party has previously been given, it is understood that
XPN: Stipulation to the Contrary there is an implied new lease, not for the period of the original
contract, but for the time established in articles 1682 and 1687.
Where “Repairs” does not extend to The other terms of the original contract shall be revived.
REQUISITES
• would actually be an improvement rather than a repair
• understood made for all the time necessary for the gathering
of fruits w/c whole estate leased may yield in 1 year, or w/c it
may yield once, although 2 or more years may have to elapse
for the purpose
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—————————————————————————————————
Art. 1722. - If the work cannot be completed on account of a
defect in the material furnished by the employer, or because of
Contractor bound to
BASIC CONCEPTS
execute piece of work for orders from the employer, without any fault on the part of the
employee for vlaue
DEFINITION contractor, the latter has a right to an equitable part of the
compensation proportionally to the work done, and
Art. 1713. - By the contract for a piece of work the contractor reimbursement for proper expenses made.
binds himself to execute a piece of work for the employer, in
consideration of a certain price or compensation. The MECHANIC’S LIEN
contractor may either employ only his labor or skill, or also
furnish the material. Art. 1731. - He who has executed work upon a movable has a
right to retain it by way of pledge until he is paid.
• obligation created upon contractor is one to do
• right of retention is conditioned upon execution of work upon
KINDS the movable
• thus, if contractor fails to accomplish the repairs on the truck,
• employment of labor or skill the right to retain the truck in accordance w/ article 1731 does
• employment of labor and furnishing of material not rise
Art. 1718. - The contractor who has undertaken to put only his
work or skill, cannot claim any compensation if the work should
be destroyed before its delivery, unless there has been delay in
receiving it, or if the destruction was caused by the poor quality
of the material, provided this fact was communicated in due
time to the owner. If the material is lost through a fortuitous
event, the contract is extinguished.
RULE
XPNs
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• due to latter’s special knowledge Art. 1729. - Those who put their labor upon or furnish materials
for a piece of work undertaken by the contractor have an
Express Reservation of Rights against Contractor for Defect action against the owner up to the amount owing from the
latter to the contractor at the time the claim is made. However,
• by employer the following shall not prejudice the laborers, employees and
furnishers of materials:
Descent of Building/Edi ce w/in 15 Years on Account of (1) Payments made by the owner to the contractor before they
are due;
Defects in Construction or Use of Inferior Materials
(2) Renunciation by the contractor of any amount due him from
the owner.
Art. 1723. - The engineer or architect who drew up the plans
This article is subject to the provisions of special laws.
and speci cations for a building is liable for damages if within
fteen years from the completion of the structure, the same
should collapse by reason of a defect in those plans and • contractor liable for unpaid wages of employees
speci cations, or due to the defects in the ground. The • owner is also liable to pay such unpaid wages “up to amount
owing from (him) to the contractor at the time the claim is
contractor is likewise responsible for the damages if the edi ce
made”
falls, within the same period, on account of defects in the
construction or the use of materials of inferior quality furnished • to this extent, owner’s liability is solidary w/ contractor, if both
are sued together
by him, or due to any violation of the terms of the contract. If
the engineer or architect supervises the construction, he shall • but, if owner already fully paid the contractor, the former’s
liability ceases
be solidarily liable with the contractor.
Acceptance of the building, after completion, does not imply • payments made by owner to the contractor before they are
due, or renunciation by contractor of any amount due him
waiver of any of the causes of action by reason of any defect
from the owner shall not prejudice the laborers or employees
mentioned in the preceding paragraph.
The action must be brought within ten years following the
collapse of the building.
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CONCEPT GUARANTY
Accessory
Unilateral Contract
Governed by SoF
KINDS
According to Source
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Applicability
Simple Double
• when there are several guarantors of just 1 debtor, and for
same debt, but they did not bind themselves solidarily
obligation secured is that of the obligation secured is that of the
principal debtor’s rst or anterior guarantor (sub-
guaranty)
Concept
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Accessory
Governed by SoF
Consideration
DISTINGUISHING PRINCIPLCES
Guarantor Surety
undertaking w/c debtor shall pay undertaking that the debt shall
be paid
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• present such person w/ integrity, capacity to bind, and • guarantor is entitled to indemnity only to the extent that the
payment has been bene cial to the debtor
su cient property to answer
• if payment was not bene ted the debtor at all, the guarantor
does not acquire any valid claim for reimbursement
creditor may Art. 2057. - If the guarantor should be convicted in rst
demand another to
serve as guarantor
instance of a crime involving dishonesty or should become
insolvent, the creditor may demand another who has all the Extent of Indemnity
if OG was convicted
of crime involving quali cations required in the preceding article. The case is
Art. 2066. - supra.
dishonesty or excepted where the creditor has required and stipulated that a
becomes insolvent
speci ed person should be the guarantor.
• debt’s total amount
• where guarantor is personally designated by creditor, the • legal interest therefrom from time payment was made known
to debtor (even if it did not earn interest for creditor)
subsequent insolvency/dishonesty of guarantor does not
entitle the creditor to demand for replacement • expenses incurred by guarantor after having noti ed the
debtor that payment had been demanded of him
• damages (if due)
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• guarantor who pays is surrogated by virtue thereof to all the Art. 2180. - The guarantors, even though they be solidary, are
rights w/c creditor previously had against the debtor released from their obligation whenever by some act of the
creditor they cannot be subrogated to the rights, mortgages,
In Case of Partial Payment and preferences of the latter.
Applicability
• guarantor is not yet entitled, for he may only exercise the
right of subrogation when the principal obligation is fully
extinguished Guarantor Surety
EXTINGUISHMENT OF GUARANTY
Modes
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Nature of Obligation guaranteed in Both Contracts Banks; Investment and Financing Institutions
valid obligation • these institutions are required to ascertain the status and
• condition of properties o ered to them as security for loans
• may be voidable/unenforceable
extended by them
• civil/natural obligation
• both may secure all kinds of obligations, whether pure or
conditional GSIS
Obligations covered • must exercise care and prudence in investing its funds
• mortgage liability usually limited to amount mentioned in • expected to ascertain the status and condition of the
contract properties o ered to him as collaterals, as well as to verify
the identities of the persons he transacts business with
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Art. 2139. - The last paragraph of article 2085, and articles For Antichresis
2089 to 2091 are applicable to this contract.
• delivery of the immovable is not a requirement for its
• rule that 2rd persons are not parties to the principal perfection
obligation, and may secure the latter by mortgaging their own • instead, upon perfection of said contract by mere consent, it
y
property, applies to both contracts will create the obligation on the debtor’s part to deliver the
• aka accommodation mortgagors, who is not solidarily bound immovable to the creditor
w/ principal debtor
• liability extends only to the property mortgaged REQUIRED FORMALITIES
Art. 2134. - The amount of the principal and of the interest shall
be speci ed in writing; otherwise, the contract of antichresis
shall be void.
For Antichresis
For REM
Consequences
First
Second
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Art. 2137. - The creditor does not acquire the ownership of the
real estate for non-payment of the debt within the period
agreed upon.
Every stipulation to the contrary shall be void. But the creditor
may petition the court for the payment of the debt or the sale of
the real property. In this case, the Rules of Court on the
foreclosure of mortgages shall apply.
Elements
Essence
Instances
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REMEDIES, IN CASE OF DEFAULT possession of such property immediately after the date of the
con rmation of the auction sale and administer the same in
ALTERNATIVE REMEDIES accordance with law. Any petition in court to enjoin or restrain
the conduct of foreclosure proceedings instituted pursuant to
For Mortgagee in REM/Antichresis this provision shall be given due course only upon the ling by
the petitioner of a bond in an amount xed by the court
• foreclose mortgage; or conditioned that he will pay all the damages which the bank
• le ordinary action to collect debt may su er by the enjoining or the restraint of the foreclosure
proceeding. Notwithstanding Act 3135, juridical persons whose
Note: property is being sold pursuant to an extrajudicial foreclosure,
• mere act of ling a collection suit for recovery of debt shall have the right to redeem the property in accordance with
secured by mortgage constitutes waiver of foreclosure this provision until, but not after, the registration of the
remedy certi cate of foreclosure sale with the applicable Register of
Deeds which in no case shall be more than three (3) months
FORECLOSURE OF MORTGAGE after foreclosure, whichever is earlier. Owners of property that
has been sold in a foreclosure sale prior to the e ectivity of this
MANNER Act shall retain their redemption rights until their expiration.
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CREDITOR’S OBLIGATIONS
Art. 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.
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REPEAL OF PROVISIONS ON PLEDGE AND CHATTEL payment or other performance of an obligation, regardless of
MORTGAGE whether the parties have denominated it as a security interest,
and regardless of the type of asset, the status of the grantor or
• aka the PPSA secured creditor, or the nature of the secured obligation;
• caused repeal of articles 2085-2123 NCC (Pledge), articles including the right of a buyer of accounts receivable and a
2140-2141 NCC (Chattel), and sections 1-16 of Chattel lessor under an operating lease for not less than one (1) year.
Mortgage Law (Act 1508)
FORMS OF COLLATERAL, WHERE SECURITY INTEREST CAN
What Security PLEDGE AND CHATTEL MORTGAGE NO MORE BE CREATED
Agreement provides:
Sec. 6, RA 11507. - A security agreement must be contained in • over ALL forms of tangible or intangible assets or personal
contained in written
contract signed by a written contract signed by the parties. It may consist of one or property as de ned by the NCC
partie more writings that, taken together, establish the intent of the
may consist of 1 or parties to create a security interest. Under Old Law Under PPSA
more writings that The security agreement shall likewise provide for the language
together establish to be used in agreements and notices. The grantor shall be
parties’ intent to create
given the option to have the agreement and notices in Filipino. future property cannot be security agreement may provide
the interes pledged/mortgaged, since the for creation of a security interest
The Department of Finance (DOF) shall prepare model
req was that the pledgor/ in a future property, but the
provides for language agreements in plain English and Filipino. mortgagor must be the absolute security interest in that property
to be used in notices
and agreements owner of thing pledged/ is created only when the grantor
CREATION OF CENTRALIZED REGISTRY mortgaged acquires rights in it or the power
to encumber it
• registry is centralized, nationwide and electronic
• lodged in LRA, where notice of a security interest and lien in by creating a security agreement (w/c
personal property may be registered MANNER OF CREATING SECURITY INTEREST may even contemplate future property
s
Note: Sec. 21. RA 11507. - Any party who obtains, in the ordinary
• since PPSA did not repeal pertinent provisions of Civil course of business, any movable property containing a security
Aviation Authority Act and Ship Mortgage Decree, a security interest shall take the same free of such security interest
agreement involving an aircraft of PH registry must still be provided he was in good faith. No such good faith shall exist if
registered w/ PH Civil Aviation Authority, while security the security interest in the movable property was registered
agreement covering a vessel must still be registered w/ PH prior to his obtaining the property.
Coast Guard o ce at port of vessel’s documentation
XPNs
third parties.
:
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existence of the agreement to another person unless Purchase Money Security Interest
requested to do so by the grantor.
Sec. 23, RA 11507. -
;
PRIORITY RULES (a) A purchase money security interest in equipment and its
proceeds shall have priority over a con icting security
interest, if a notice relating to the purchase money security
;
In General
interest is registered within three (3) business days after the
Sec. 17, RA 11507. - The priority of security interests and liens in grantor receives possession of the equipment.
the same collateral shall be determined according to time of (b) A purchase money security interest in consumer goods that
registration of a notice or perfection by other means, without is perfected by registration of notice not later than three (3)
regard to the order of creation of the security interests and business days after the grantor obtains possession of the
liens. consumer goods shall have priority over a con icting
security interest.
Priority for Perfection by Control (c) A purchase money security interest in inventory, intellectual
property or livestock shall have priority over a con icting
Sec. 18, RA 11507. - perfected security interest in the same inventory,
(a) A security interest in a deposit account with respect to intellectual property or livestock if:
which the secured creditor is the deposit-taking institution (1) The purchase money security interest is perfected
or the intermediary shall have priority over a competing when the grantor receives possession of the inventory
security interest perfected by any method. or livestock, or acquires rights to intellectual property;
(b) A security interest in a deposit account or investment and
property that is perfected by a control agreement shall (2) Before the grantor receives possession of the
have priority over a competing security interest except a inventory or livestock, or acquires rights in intellectual
security interest of the deposit-taking institution or the property, the purchase money secured creditor gives
intermediary. written noti cation to the holder of the con icting
(c) The order of priority among competing security interests in perfected security interest in the same types of
a deposit account or investment property that were inventory, livestock, or intellectual property. The
perfected by the conclusion of control agreements shall be noti cation sent to the holder of the con icting
determined on the basis of the time of conclusion of the security interest may cover multiple transactions
control agreements. between the purchase money secured creditor and
(d) Any rights to set-o that the deposit-taking institution may the grantor without the need to identify each
have against a grantor’s right to payment of funds credited transaction.
to a deposit account shall have priority over a security (d) The purchase money security interest in equipment or
interest in the deposit account. consumer goods perfected timely in accordance with
(e) A security interest in a security certi cate perfected by the subsections (a) and (b), shall have priority over the rights of
secured creditor’s possession of the certi cate shall have a buyer, lessee, or lien holder which arise between delivery
priority over a competing security interest perfected by of the equipment or consumer goods to the grantor and the
registration of a notice in the Registry. time the notice is registered.
(f) A security interest in electronic securities not held with an
intermediary perfected by a notation of the security
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Sec. 24, RA 11507. - A perfected security interest in livestock REMEDIES OF SECURED CREDITOR secured creditor may, after default, sell/dispose
the colalteral in its present condition or following
securing an obligation incurred to enable the grantor to obtain any comemrcially reasonable preparation/
food or medicine for the livestock shall have priority over any Sell/Dispose Collateral processing
other security interest in the livestock, except for a perfected
purchase money security interest in the livestock, if the secured Sec. 49, RA 11507. -
creditor providing credit for food or medicine gives written (a) After default, a secured creditor may sell or otherwise
noti cation to the holder of the con icting perfected security dispose of the collateral, publicly or privately, in its present
interest in the same livestock before the grantor receives condition or following any commercially reasonable
possession of the food or medicine. preparation or processing.
(b) The secured creditor may buy the collateral at any public
In Certain Movable Property disposition, or at a private disposition but only if the
collateral is of a kind that is customarily sold on a
Sec. 25, RA 11507. - A perfected security interest in a movable recognized market or the subject of widely distributed
property which has become a xture, or has undergone standard price quotations.
accession or commingling shall continue provided the movable
property involved can still be reasonably traced. In determining Sec. 51, RA 11507. -
ownership over xtures, accessions, and commingled goods, (a) Not later than ten (10) days before disposition of the NOTE
the provisions of Book II of Republic Act No. 386 or the "Civil collateral, the secured creditor shall notify: secured creditor has
a notification
Code of the Philippines" shall apply. (1) The grantor; obligation re
(2) Any other secured creditor or lien holder who, ve (5) disposition of the
days before the date noti cation is sent to the grantor, collateral
held a security interest or lien in the collateral that was
Sec. 54. -
secured creditor may also, afterd (a) After default, the secured creditor may propose to the
efault, propose to debtor and
grantor to take all/part of the
debtor and grantor to take all or part of the collateral in total
collateral in full/partial satisfaction or partial satisfaction of the secured obligation, and shall
of secured O/ and must send a send a proposal to:
proposal to the following… (1) The debtor and the grantor;
(2) Any other secured creditor or lien holder who, ve (5)
days before the proposal is sent to the debtor and the
grantor, perfected its security interest or lien by
registration; and
(3) Any other person with an interest in the collateral who
has given a written noti cation to the secured creditor
before the proposal is sent to the debtor and the
grantor.
(b) The secured creditor may retain the collateral in the case
of:
(1) A proposal for the acquisition of the collateral in full
CASES when retention of satisfaction of the secured obligation, unless the
the colalteral is allowed secured creditor receives an objection in writing from
any person entitled to receive such a proposal within
twenty (20) days after the proposal is sent to that
person; or
(2) A proposal for the acquisition of the collateral in partial
satisfaction of the secured obligation, only if the
secured creditor receives the a rmative consent of
each addressee of the proposal in writing within
twenty (20) days after the proposal is sent to that
person.
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Lease, Accessory Contracts, Credits
Sec. 45. -
(a) Any person who is entitled to receive a noti cation of
disposition in accordance with this Chapter is entitled to
redeem the collateral by paying or otherwise performing
the secured obligation in full, including the reasonable cost
of enforcement.
(b) The right of redemption may be exercised, unless:
(1) The person entitled to redeem has not, after the
default, waived in writing the right to redeem;
(2) The collateral is sold or otherwise disposed of,
acquired or collected by the secured creditor or
(3) The secured creditor has retained the collateral.
Grantor
• who, ve days before the date that noti cation is sent to the
grantor, held a security interest or lien in the collateral that
was perfected by registration
• anytime
XPNs
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SPECIFIC IMMOVABLES AND REAL RIGHTS OF DEBTOR (6) Support during the insolvency proceedings, and for three
months thereafter;
Art. 2242. - With reference to speci c immovable property and (7) Fines and civil indemni cation arising from a criminal
real rights of the debtor, the following claims, mortgages and o ense;
liens shall be preferred, and shall constitute an encumbrance (8) Legal expenses, and expenses incurred in the
on the immovable or real right: administration of the insolvent’s estate for the common
(1) Taxes due upon the land or building; interest of the creditors, when properly authorized and
(2) For the unpaid price of real property sold, upon the approved by the court;
immovable sold; (9) Taxes and assessments due the national government, other
(3) Claims of laborers, masons, mechanics and other workmen, than those mentioned in articles 2241, No. 1, and 2242, No.
as well as of architects, engineers and contractors, 1;
engaged in the construction, reconstruction or repair of (10)Taxes and assessments due any province, other than those
buildings, canals or other works, upon said buildings, canals referred to in articles 2241, No. 1, and 2242, No. 1;
or other works; (11) Taxes and assessments due any city or municipality, other
(4) Claims of furnishers of materials used in the construction, than those indicated in articles 2241, No. 1, and 2242, No. 1;
reconstruction, or repair of buildings, canals or other works, (12)Damages for death or personal injuries caused by a quasi-
upon said buildings, canals or other works; delict;
(5) Mortgage credits recorded in the Registry of Property, upon (13)Gifts due to public and private institutions of charity or
the real estate mortgaged; bene cence;
(6) Expenses for the preservation or improvement of real (14)Credits, which, without special privilege, appear in (a) a
property when the law authorizes reimbursement, upon the public instrument; or (b) in a nal judgment, if they have
immovable preserved or improved; been the subject of litigation. These credits shall have
(7) Credits annotated in the Registry of Property, in virtue of a preference among themselves in the order of priority of the
judicial order, by attachments or executions, upon the dates of the instruments and of the judgments, respectively.
property a ected, and only as to later credits;
(8) Claims of co-heirs for warranty in the partition of an COMMON
immovable among them, upon the real property thus
divided; Art. 2245. - Credits of any other kind or class, or by any other
(9) Claims of donors or real property for pecuniary charges or right or title not comprised in the four preceding articles, shall
other conditions imposed upon the donee, upon the enjoy no preference.
immovable donated;
(10)Credits of insurers, upon the property insured, for the Art. 2251. - Those credits which do not enjoy any preference
insurance premium for two years. with respect to speci c property, and those which enjoy
preference, as to the amount not paid, shall be satis ed
Notes: according to the following rules:
• only taxes, duties and fees on speci c property enjoy (1) In the order established in article 2244;
preference while all others stand on same footing, to be (2) Common credits referred to in article 2245 shall be paid
satis ed pari passu and pro rata pro rata regardless of dates.
• security interest (in personal or movable) perfected pursuant
to PPSA prior to commencement of insolvency proceedings • paid only after paying all special preferred and ordinary
re grantor shall remain perfected and retain the priority it had preferred credits
before commencement of said proceedings • among these, there shall be no preference
• to be paid pro rata, regardless of dates
ORDINARY PREFERRED
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ff
fi
fi
fi
fi
fi
fi
fi
fi