Title XVI.


CHAPTER 1 PROVISIONS COMMON TO PLEDGE AND MORTGAGE Essential Requirements of Pledge & Mortgage Art. 2085. The following requisites are essential to the contracts of pledge and mortgage: (1) That they be constituted to secure the fulfillment of a principal obligation; (2) That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged; (3) That the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose. Third persons who are not parties to the principal obligation may secure the latter (principal obligation) by pledging or mortgaging their own property.

Constituted to Secure Fulfillment of a Principal Obligation Art. 2086. The provisions of Article 2052 are applicable to a pledge or mortgage.

ART. 2052. A guaranty cannot exist without a valid obligation.

Nevertheless, a guaranty may be constituted to guarantee the performance of a voidable or an unenforceable contract.

2087. It is also of the essence of these contracts that when the principal obligation becomes due. 2089. the things in which the pledge or mortgage consists may be alienated for the payment to the creditor. Pledge / Mortgage is Indivisible Art. A pledge or mortgage is indivisible. Any stipulation to the contrary is null and void. 2088. Right of Creditor where Debtor Fails to Comply with his Obligation Therefore.It may also guarantee a natural obligation. appropriate the things given by way of pledge or mortgage. even though the debt may be divided among the successors in interest of the debtor or of the creditor. the debtor's heir Prohibition Against Pactum Commissorium Art. or dispose of them. The creditor cannot who has paid a part (proportional satisfaction) of the debt . Thing Pledged / Mortgaged may be Alienated Creditor is Not Required to Sue to Enforce his Credit Art.

each one (each thing pledged / mortgaged) of them guarantees only a determinate portion of the credit. . that the debtors are not solidarily liable. return the pledge or cancel the mortgage. there being several things given in mortgage or pledge. 2090. The indivisibility of a pledge or mortgage is not affected by the fact Exceptions to Rule of Indivisibility From these provisions is excepted the case in which. The debtor. Art. shall have a right to the extinguishment of the pledge or mortgage as the portion of the debt for which thing is specially answerable is satisfied. to the prejudice of the other heirs who have not been paid. in this case. Neither can the creditor's heir who received his share of the debt.cannot ask for the proportionate extinguishment of the pledge or mortgage as long as the debt is not completely satisfied.

without prejudice to the criminal responsibility incurred by him who defrauds another. A promise to constitute a pledge or mortgage gives rise only to a personal action between the contracting parties. by offering in pledge or mortgage as unencumbered. or by misrepresenting himself to be the owner of the same. be they pure or subject to a suspensive or resolutory condition. 2091. things which he knew were subject to some burden. Promise to Constitute Pledge / Mortgage Creates No Real Right (only Personal Right) Art. 2092. . The contract of pledge or mortgage may secure all kinds of obligations.All Kinds of Obligations can be Secured by Pledge / Mortgage Art.

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