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Uy, Cherlyn Mae D.

; Tuñacao, Luz Pacencia

Reporters:
PRINCIPA
L
OBLIGATI

Elements:
A. Parties – mortgagor has capacity to
encumber property
B. Object –
GR: Movable Property only
EXC: Immovable property allowed if parties
agree BUT will NOT bind third parties
C. Causa – same with principal obligation
D. Form
To bind parties – public instrument
To bind third persons- affidavit in good faith ;
description of property; registration

Characteristi
cs:
-Accessory
- Formal
-Unilateral

CHATTEL
MORTGA
GE

Effect:
Creates a REAL RIGHT
or LIEN which follows
the property wherever
it goes

REGIS
TERR

Mortgag
or PAYS

Place
GR: the registries of residence of mortgagor AND
location of property (otherwise – void)
EXC: Vessels ; Shares of Stocks; Automobile

Discharge
from
Mortgagee

Mortgag
or
DEFAULT

Right of
Redemptio
n

Who may
redeem?
a. Mortgago
r
b. Subseque
nt
mortgage
e

Cancel the lien annotated on
the title and in the Chattel
Mortgage Registry

What must be
paid?
a. Principal
obligati
on and
interest
b. Costs
and
Expense
s
incurred
by any
breach,

FORECLOSUR
E

JUDICI

EXTRAJUDICIA

DISPOSITION
OF PROCEEDS

Application
a. Cost of expenses of sale
b. The principal obligation and
interest
c. Claims of subsequent
mortgagees
d. The balance, if any, to the
mortgagor
Deficiency
Mortgagee may recover
Exc: Chattel over movable is sold
under instalment plan =

Effects:
Redemptioner
is subrogated to
the rights of the
mortgagee,
thus he may
foreclose the
mortgage.