REAL ESTATE MORTGAGE CHATTEL MORTGAGE PLEDGE PERSONAL PROPERTY SECURITY ACT ANTICHRESIS

Act 3135, General Banking Act of 2000, Civil

GOVERNING LAW Act 1508, Civil Code Article 2039-2123 of the Civil Code Republic Act 11057
Code

a contract by virtue of which the

a contract whereby the debtor secures to the debtor delivers to the creditor or to a third A security agreement may provide for the
creditor the fulfillment of a principal a contract by virtue of which a PERSONAL person a PERSONAL PROPERTY/MOVABLE or creation of a security interest in a future
obligation, immediately making document evidencing INCORPOREAL RIGHTS
NATURE IMMOVABLE PROPERTY OR REAL RIGHTS PROPERTY is recorded in the Chattel Mortgage for the purpose of securing the fulfillment of a property, but the security interest in
Register as security for the performance of an PERSONAL PROPERTY is created only when the
OVER IMMOVABLE PROPERTY answerable to obligation. principal obligation with the understanding grantor acquires rights in it or the power to
the principal obligation in case it is not that when the obligation is fulfilled, the thing
complied with at the time stipulated. delivered shall be returned with all its fruits encumber it.
and accessions.

REGISTRATION Registry of Deeds Electronic Chattel Mortgage Registry Public Instrument Personal Property Security Registry
DELIVERY TO CREDITOR NOT REQUIRED NOT REQUIRED REQUIRED YES & NO

Section 49. Right to Dispose of Collateral.—

(a) After default, a secured creditor may sell or

MODE/S OF RECOVERY Judicial or Extra-judicial Foreclosure Judicial or Extra-judicial Foreclosure Public Sale via Notary otherwise dispose of the collateral, publicly or
privately, in its present condition or following
any commercially reasonable preparation or
processing.

POSTING AND PUBLICATION REQUIRED REQUIRED NOT REQUIRED NOTICE OF REGISTRATION IN PPSR

DEFICIENCY / RIGHT TO CLAIM DEFICIENCY
YES - Creditor may maintain action for NO (BASED ON ARTICLE 2115: If the price of YES. Section 52. Application of Proceeds.—
deficiency although the Chattel Mortgage Law the sale is less, neither shall the creditor be
YES - Mortgagee is entitled to deficiency is silent on this point, because a chattel entitled to recover the deficiency, (b) The secured creditor shall account to the
mortgage is given only as a security and not as notwithstanding any stipulation to the grantor for any surplus, and, unless otherwise
payment of the debt. contrary.) agreed, the debtor is liable for any deficiency.

YES. Section 52. Application of Proceeds.—

NO (BASED ON ARTICLE 2115: If the price of
the sale is more than said amount, the debtor
RETURN OF SURPLUS MUST BE RETURNED MUST BE RETURNED (b) The secured creditor shall account to the
shall not be entitled to the excess, unless it is grantor for any surplus, and, unless otherwise
otherwise agreed. )
agreed, the debtor is liable for any deficiency.

REDEMPTION YES (Right of Redemption) NONE PROVIDED BY LAW NONE PROVIDED BY LAW YES (Equity of Redemption)

The amount of the winning bid plus 1% legal

FORMULA OF REDEMPTION PRICE interest per month from the date of the NOT APPLICABLE NOT APPLICABLE
auction sale up to the time of redemption

NO (Article 2088)
APPROPRIATION ALLOWED NO (Article 2088) NO (Article 2088) Exception: When the 1st or 2nd Auction sale is YES (Right of Retention)
not successful.
DIVISIBLE NO (Article 2089-2090) NO (Article 2089-2090) NO (Article 2089-2090) NO (Article 2089-2090)