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Understanding RA 11057 and Its Effect With NCC and Prior Laws
Understanding RA 11057 and Its Effect With NCC and Prior Laws
ALGARME DIGEST
CREDIT TRANSACTION
Differences
PLEDGE MORTGAGE RA 11057
Creation Delivery of the thing is Delivery not necessary Harmonized where a
necessary signed written contract
is enough
Validity Must be in a public Must be registered to Perfection be it
instrument containing bind third persons movable/ immovable is
description of the thing harmonized under Sec
pledges and the date 12:
thereof to bind third - Registration of a
person notice with the
registry
- Possession of the
collateral by the
secured creditor
- Control of
investment
property or
deposit account
Foreclosure Liability is extinguished Liable to the mortgagee Secured creditor
deficiency/surplus wither there is a defiance for any deficiency (pledgee or mortgagee)
or not shall account to the
grantor (pledger/
mortgagor) any surplus,
unless otherwise
stipulated.
Hence grantor is liable
for deficiency
ALGARME DIGEST