CREDIT TRANSACTIONS

PLEDGE REAL ESTATE MORTGAGE CHATTEL MORTGAGE

OBJECT Personal Property Real Property but extends to the Personal property subject thereof
Including, incorporeal natural accessions, improvements, fruits,
rights and accrual income, and indemnity
from insurance.
PERFECTION Delivery Consensual, Formal
but convered by the Statute of Frauds

Public instrument Public instrument that is registered in Affidavit of Good Faith* registered
required to bind third the Registry of deeds is required to bind in the Mortgage Registry in the
parties third parties Registry of Deeds required to bind
third parties. Absence of which,
howerver, makes the contract still
binding between parties.

For vessels - MARINA

For Motor vehicles - LTO
POSSESSION PledgEE Mortgagor Mortgagor
Return of the thing
pledged by the pledgee
to the pledgor shall result
in extinguishment of the
contract of the pledge

PRINCIPAL that w/c is existing at the Generally, covers only that w/c is stated Those indicated in the Affidavit of
OBLIGATION time of the pledge in the deed even if less than the Good faith unless there's stipulation
amount of loan. xpn: as to increase in coverage w/c will
stipulation of DRAGNET CLAUSE be binding but the securty itself
arises only after amending the old
contract
Sale of the Valid w/ CONSENT VALID Criminal Liability
thing during
PENDENCY
Sale for DEBT By notary public -- Extrajudicial or Judicial EXTRAJUDICIAL only
Public auction -- always
EXTRAJUDICIAL

NOTICE to REQUIRED NOT required. Unless stipulated. REQUIRED - 1o days prior sale
P/M Legal pledge- requires Judicial posting- 3 public places at least Posting - 10 days prior auction
demand for the amount 20 days prior to sales and publication
& Foreclosure must be
made w/n 1 month from
such demand.
Creditor's ENTITLED, xpn: NOT ENTITLED NOT ENTITLED
right to 1. there's stipulation
EXCESS 2. Legal pledge
Cr right to NOT ENTITLED ENTITLED except: ENTITLED unless under Recto Law
recovery Mortgagor is 3rd party, unless there's
DEFICIENCY stipulation
Redemption NO right Extrajudicial Foreclosure: 1 yr from date NO right
of foreclosure xpt:
Creditor - BANK
Debtor - Juridical Person
--not exceeding 3 months.
Juridical Foreclosure: until the
confirmation of sale by court