7. ANTICHRESIS 3.

To render an account of the

fruits to the debtor
Antichresis is a contract 4. To bear the expenses necessary
whereby the creditor acquires the for its preservation and
right to receive the fruits of an repair
immovable of the debtor, with the REMEDIES OF CREDITOR IN CASE OF
obligation to apply then to the NON-PAYMENT OF DEBT
payment of the interest, if owing, 1. Action for specific
and thereafter to the principal of performance
the credit 2. Petition for the sale of the
CHARACTERISTICS real property as in a
1. Accessory contract – it foreclosure of mortgage under
secures the performance of Rule 68 of the Rules of
a principal obligation Court.
2. Formal contract – it must i. The parties, however, may
be in a specified form to agree on an extrajudicial
be valid foreclosure in the same manner as
SPECIAL REQUISITES: they are allowed in contracts of
1. It can cover only the mortgage and pledge
fruits of an immovable ii. A stipulation authorizing the
property antichretic creditor to appropriate
2. Delivery of the immovable the property upon the non-payment
is necessary for the of the debt within the agreed
creditor to receive the period is void.
fruits, not to make the
contract binding
3. Amount of principal and
interest must be specified
in writing
4. Express agreement that
debtor will give
possession of the property
to creditor and that the
latter will apply the
fruits to the interest, if
any, then to the principal
of his credit
The obligation to pay interest
is not the essence of the contract
of antichresis; there being nothing
in the Code to show that
antichresis is only applicable to
securing the payment of interest
bearing loans. On the contrary,
antichresis is susceptible of
guaranteeing all kinds of
obligations, pure or conditional

OBLIGATIONS OF ANTICHRETIC CREDITOR

1. To pay taxes and charges on
the estate, including
necessary expenses. Creditor
may avoid said obligation by:
a. compelling the debtor to
reacquire enjoyment of the
property
b. by stipulation to the
contrary
2. To apply all the fruits, after
receiving them, to the payment
of interest, if owing, and
thereafter to the principal