Burners laws and Regulations Pledge, Real Mortgage and Chale! Morgage Natures and Requirites. Can @ plidgt morgage exit without a valid obligation ? A pledge or mortgage cannot exist wilhOut a valid obligation. Neveritteless. @ pledge or mortgage may be conetituled jo secure the performance of a woidable or unenforceable or wen a natural obligation: (Art 20g) (Ard: ara) What are the characteristicr of a contract of pledge? i Pledge it @ teal contract - because if is perfected by the aclivery of Ihe thing : ait is an accercory contract , vecaust it needs a principal obligation 10 exist ; a Wit a unilateral cantract because i crtales sately an ooliqation on ine part of He pledgee to reiurh the Hing pledged upon se fulfillment of dhe principal obligation What arc the Kinde of pledge ? D voluntary pledge - that which ir cteated by agreement of the parties a) Legal ~ cttated by operation of law in the went that the principal obligation scured by a pledge or mortgage becomes due but remains unpaid, what ir the might of the creditor? Wir he erence of the contract’ of pledge and moriqage that when Jhe principal obligation becomes due, #he things in which the plidge w morgage consirts may ot alienated for ine payment of ine cftditor- ¢ art- 2087) How ig a contract of pledge cunctitutca? In addition to iM requisites thot it be conetiluded jo secure the fulfilment of a principal obligation ; that the picdqor be the absoluie owner of the thing pltdqed ; and that Me percon contiluting the pledge has te Flee disposal of his property, and in he absence dhertof Mal Ne be legally authorized for the purpore, it it necescary that the ning pledgtd be placed in Ihe posesrion of Ihe creditor, or of a 4rd person by common agicement. ¢AN- 209%) when shall a pledge be eHective againe! 4rd persone? A pledge cho be iHeclive av again’d %d person when the decenption of the 4hing pltdgtd and ihe dait of the pledge apptar ina public instrument. ¢ Art: 2096)can the dcolor demand ihe return of dhe thing pledged before the principal deot is paid? No. the creditor has a right 40 retain the Ming in his posession or in that of a 41d ocrs0 4 whom it has been dativertd until ane debt i¢ paid. Cart: 2048) While the thing pledged ir in sm posltstion of ane ceedilor, now shall he take car of int thing pledged 7 ‘the ctcditor shall take of the thing pledged with the diligence of @ good fathel of a family: Ne has @ right 10 He ccimourrement of the expenees made for +e preservation, and if liable for the If or it deterioration. ¢ ars a09q) Whal is the remedy of the creditor ifhe i dtccived gn ine substance or quantity of the thing pledged? The creditor may cither 1) Claim another 4hing in ite Mead ; oF 2) Demand immediate payment of the principal obligation. (Art- 2104) whal happins to te pledge if the thing plage is (tiUMMta by the pledgec to tne eltdgor or owner? the plage it extinguirhtd. Any stipulation to te contrary if VOID. (an ano) what presumption arise’, if subsequent to the perfection of the pleage, ihe thing is in the possession of the pleagor or owner? mee iva that the thing has ben sturmtd by the pledge: The same precumption existe if ine sing pltdged isin ihe earsertion of a 3rd person uno has received # from ihe pltdgor or owner after the canctitution of the pledge. CArt-auld) Can the cicaitor appropriagt the thing pleaged if in the fret sale she thing ir ant sold? No if @ It auction, the thing is nyt cold. a 2nd auction with she came formalities shall be held, and if at the tnd aucHon thee ic nv sale, then the creditor may appropriatt #he Hing paged, but he mut give an acquiltance for hir «mire claim Can atta) Can the pledgor of owncr bid in the auction sale? The pledgor or owner may bid. Hehar a mater of fact a beiler right if he chould sfer the same sume as ihe hightet bidder CATE alld) May the pledgee also bid? The pleagee may alto bid, but his offer chal not be valid if he it the only bidder. (Art aus)Whal i¢ the remedy of tne cleditor if heir dectived on the substance or quantity of the thing pledged? the creditor may wither ) aaim anoiner thing in ilf read ; or 2) Oemand immediate payment of the principal obligation . Cart. 3104) what hoppiny ty the pleage if the Hing pledged i” iduImid by the pleage {0 he pledgor or owner? the pledge is extinguished - any ctipulaton to the conirary i¢ woid- (AML aio) what presumption anies, if ubsequem 40 the perfection of the pledge. the thing if in the possescion of int pleagor or owner? There if a prima facit presumption that the thing hav been returned by the pledge Tht came presumption exicts if the thing pledged ir in the porterrion of @ 3rd perron who hav ccctived it from the plagor or owner afier Yh constitution of the pledge Cart gio) What ir the effect in care the hing pledged ir cold at public auction? The cale of the thing pledged extinquiches the principal obligation whether or not the proceeds of the sale are equal to the amount of the principal obligation , interest , and expenres in a proper care. (art allt) If the price of Me scale iv Iter, can dhe creditor tecover the deficiency ? The creditOr id Ot entitled 40 fecover the deficiency Any stipulation te that «ect ig null and void- (Art ally) In case of pledge by operation of aw, how shall the procecds of the sale thereof be appli¢d ? The procecds mall be applitd 10 she payment of the debt and expenses, the tumainder of the price of He sale chall oe dulivered 40 ine obligor. (Art - alal)His @ contract in whicn the dibtor guarantees 40 the creditor #ht fulfilment of a principal ovligation supiicting for ihe faisnful compliance therewith @ real property in care of nontulfillment of said vbligation al ihe time ctipulaicd- (1a Manresa . 9-460) Whal moy pe the object of a contract of mortgage? ony the Following prUptTY may be the objtck of @ mortgage }) Immovabies ; a) Alienavie real rights in accordance with ihe iaws, imported upon immovable (ant ala4) What are the erential requisites of a contract of mortgage? They art Thal the mortgage be conctijuled 40 stcute she fulfilment of @ erincipal ebligation ; 4} that ine mortgagor bc the absolute owner af #ne thing mortgaged ; 8) that 4at peCCON conrtituting the morigage bar Ahe {ree direaral of nir property, ond in the abrence shercot, thal he be legally authorized for the purrare ; (Art ass) 4) Thal fhe document in which the mortgage appears ve sccaided in the Rigictry of Property (an ant) lv ihe morgage valid if tne documend in which i appears ir nef cecorded in He Regiviry of Property? Tue mortgage ncverineless ie binding wtiwen partity pul ir ast winding ar te ard peony. (act 2020) In what form shall a contract of morigage bt. 40 be binding vciween ine porti¢/? TNE contact of mortgage ated dt ve ina public document in order jo ot valid bHWEEN ihe patties, but 40 shat she morigage can be segirteree with *ne Kegirtry oF Properly, a public documint ig nececeary Whad iv the right of MC morgage in care ine mortgage dds art appear in a public document, and conrequetily aot ceaiciered ? The meiqagce can demand ame extcution and ane ctcding ef Ine document in whien the meriqage ir formalized. CA- 2120)Mm cart of mariage, deer ine marigage dots not appear in public document, and convequently ant cegictered ? No The mortgagor stain ownerrhip, oul te moriqage ditty and immediately cubiccty ine Hopcriy upen which it ix impoved. whowver ine PErsecrOr may DL, HH Int fUKiMeAL of INE sviiqation for whore seuriiy it war consituicd- (art- 2126) a aner winds, me morgage erates a Kai right which can be enforced ar again! the whole arid: 1b fowowe the property wbbevcr Ine peecesfor may O¢ What is ihe extent of a@ mortgage consituitd on immovavic property? The morgage extends to* a) the naiural occections; >) the improvements Q grwing ‘ruits + and 4) cents of income aot yet received when INC obligation bicomes aut; and Can the mortgage ettdit be alicnaitd? me morgagce may alienate +t moigagt credit (the fight of int morlgaget) of artian 40 0 46d person in whole or iN part (art-2122) Murl fhe alienation of ihe morigage cidit be reairicrtd? Mf Ene alienation is not teQirtertd, ib if still Valid deen parties. Regicifation is any accdcd 40 atect std pecrons when ine morgage deol is due, fom whom shail ne creditor claim payment? ME marigage Cleator muct make a pridf dtmand upon dhe debtor. In cave ne cannot pay, the ciiditor may claim fram a 4¢a Perron in porcestion of the mortgaged property, she payment of He part of the credit secured oy dhe pmperiy which said 4a perloN pdérecite. (at-araa) What ir the cAect of a stipulation in the mortgage contract pronibiting ihe owner from alienating 4ne immovable mortgaged ? juch sipulation it nui and void. (Art-2130) When the moriqage deot ir duc and remaine unpaid. can the mortgagee appropriate. ihe pmperty mortgaged? Nov Any stipulation alowing she mariage cridilor 40 oppropriale the prpely morigaged i oul and void. The onty right oF the marqagee creditor ir to forcioce whe mortgageChaite! Mortgage is a contract by virtue of which perconal property is (ecorded in éne chattel Mortgage Reaitiry ava ctcutliy far the performance of on obligation. (Arl-2140) What may be the cubitcl moHer of q chaitel mortgage? the sublet maker of a chaltl moriqage mut always be pefconal oF movable proptty (ant ato) What aie the laws qovirning chatlel mortqaqi MC chat! Mortgage Law, Act Wo: 1704, af amended + 2) te divil gode 4) The fevized Adminirirative cede ; and The ferred Anal cade What ir the wttent of @ chattel Morigage? The Chatiel Mortgage chal cover only the property described theriil and nat tke or eubdituicd property shetcarter by ihe merigagir and placed in the came acporitory ar ihe empenYy sriqinaly morigagtd. anything Me martaaqe +0 the contrary tat withrianding . cart - roe) Thir, however, doce ndt apply to mortgage of the so called “rolling slacks” wterring 40 goede which at constantly ld and ruddtituted with now clock tuch ar guide in qratity, dry giods sole, and socks of medicines in drugeorts what are the formalities a Concdtute a Voli chatie! Mortgage? 1) the ngistrotion of ihe pesonal property in the chance! Morigage keaidtcr, ana if the property ic situated in a province different from shal in which ie mortgagor tesided, ngitttation shall be made in the Chae! Moriqage keqirter of both places 2) Te personal properiy muct dW rutticiently devcribid 10 enable Ihe partits to the Morrqage or any eHnCE pUccON 40 identify #he come. 4) There mur de an affidavit of quod faith wherein Ae parties cwear shat dhe morigage iv made for the purpore of securing the fulgilment of the obligations for which 4he martqage was executed and for no other purpose, and thal the same if @ just and Valid obligation Gnd not entered ind far the purpose of fraud In case of default in the payment of the debt by the mortgagor, can the morigagee appropriait ihe thing moriqagtd? No- HIS only cight is 40 foreclose the cnaHel mortgage. that is 10 have ihe property sold at public auction.How shail he procecde of the public sale be applitd? The proceeds shall be applica 40 the payment of the A ‘) Corts and expenses of ihe sale 2) The obligation securcd by the mortgage ; ) Incase of balance if tere if any, srall be paid 10 the mortgagor. what if redemption? A danraction by which #he mortgagor (cacquitts or buys back the property which may have pasred under the motigage or divtar the property of the Nien which the mortgage may have created What are the Kinds of Reacmption ? ) Equity oF Redemption - right of the mortgagor 40 redeem the mortgaged propedy attr nif defaull in tne performance of ihe conditions of the merigage ul before the ale of the mortgaged property of confirmation ef the sale 2) Right of Redemption ~ right of mortgagor io ccdeem the. mortgaged property within a ceain period after it mar wld for ane satisfaction of 1N¢Parties 40 a Bailment a) Bailor - (4he giver) te party who delivercd the porttecion or cudody of the thing bailed. ») Bailce ~ C4he mecipien!) the party who receives the persercion of the thing thus delivered fubjechs under sailment The H rubjects fail under bailmente 1) Commodaium - Wit a gratuitous tan of a thing, to be used for a certain time and fora ceriaiN purport, and with the obligation 19 ctturn the same thing after the time expires or she purpore accomplished. (ark. 1430, NCC) Claw dictionary) 2) simple (0a0 or Muluum - A conteact by virtue gf which ont of ihe contracting parties acliVers to the other money or any het consumable things subject 40 ane condition thot the same amount of the rome kind and quality be paid or returned. Cart 199, NCC) [ taw Dictionary J 9) Deposit - When @ person tcriver @ thing otionging #4 onotner with the obligation 40 rarely keeping and scturning i at the inctance of the owner of depositor. [ Law dictionary) 4) Pledge ~ Te deposit OF the perronal property by tht debtor witha criditor ar recurity for payment of the dcbt- A bailment of a chattel ( generally personal property) ar security for the dtot without eecting a sranstcr of fitle- (Hemphill 's law dictionary J ) Weare - AweiHen agecement under which possession and ure of property if granted, fora specifica time. for a specifitd payment. the tandiord (iestor) and the tenant Ciersee) rctotionchipfeope of cledit transactions the study of credit transactions is wider in scope than Bailments and aside from tht abovementioncd subjects undel paiiments, the following additional supjecty make up the whole Credit Transactions: ‘) warehouse Keccipt - A ceceipt showing storage of goede ar property ina worehourt ; iit sometimes und ar an instruments ana is evidence of Title 40 the property in storage. [ Hemphill’ Law Dictionary] 2) Guaranty - An undertaking +0 oe legally responsible for the payment of a debt of another of for ihe pefformance of anothers act that if tquittd ar 4 ital obligation A guarantor (one woo furnichts @ quaraniy) ir fecondarily tiaeie, ond in tome instances may be release from liability if there is a failure to make @ demand on ihe principal debtor, o 0 purmue availabl, scemedies against the debtor: 3) Surctyship - Ina contract of Sucttyship, one part agrees to b¢ answerable for He debt of nother or for #he performance of anothers act thatir cquittd as a itgal obligation A quarantor (ont wno furnichts a quaraniy) ir secondarily taste, and in fome instances may ve rekarta from liability if there if a failure 40 make a demand on ine principal debtor, or #0 pure availabl, remedies against ‘he debtor. 4) Mortgage - $Me transfer of property pasting conditionally ar security for a debt Mortgage may be © Real sriate Morigage ~ Wir an accecrery sbligation wheitby cal properly it dered ar recurity for o debt or Wan. © chattel Mortgage - Wit aa accescory obligation whcreoy pecronal Property is offered ar recurity for o debt of wan a) Antichresis- A contract by virtue of which the creditor acquires the right 40 fective the fruits of on immovable of hic debtor, with dhe obligation 40 apply them 40 he payment of the interest, if owing, and thercatter to ihe principal of hic credit. (Att alga, civil code)