LAW ON CREDIT TRANSACTIONS

PLEDGE REAL MORTGAGE CHATTEL MORTGAGE

Common Requisites 1. Secure fulfillment of a valid principal obligation
2. Absolute Owner of the thing pledged or mortgaged
3. Free Disposal of the property or Legally Authorized

REQUISITES FOR:
VALIDITY 1. Secure fulfillment of a
valid principal
obligation
2. Absolute Owner of the
thing pledged.
3. Free Disposal of the
property or Legally
Authorized
4. Actual Delivery to
creditor or third person
TO BIND THIRD In Public Instrument
with description of the
PERSONS object and date of
pledge.
OBJECTS 1. Movable Property
2. Incorporeal Rights
3. Endorsed Negotiable
Instruments
1. Secure fulfillment of a valid
principal obligation
2. Absolute Owner of the
thing mortgaged
3. Free Disposal of the
property or Legally
Authorized
Recorded in the Registry of
Property
1. Immovables
2. Property with intention to
permanently attached
3. Alienable Real Rights
1. Secure fulfillment of a valid
principal obligation
2. Absolute Owner of the thing
mortgaged
3. Free Disposal of the property or
Legally Authorized
4. Recorded in Chattel Mortgage
Register
Affidavit of Good faith
1. Movable Property
2. Susceptible of appropriation
3. Forces of Nature
4. Temporarily attached to real
property
5. Obligations and action- objects
 are movables or demandable
sums
6. Shares of stocks
KINDS 1. Conventional or 1. Conventional or Voluntary
Voluntary Pledge Mortgage
- Usual kind of pledge 2. Legal Mortgage
2. Legal 3. Equitable Mortgage
 Possessory Lien by a - Lacks formality, but
possessor in good faith intention is to make real
 Possessory Lien of mortgage
worker
 Depositor’s Right of
Retention
RULES ON
APPROPRIATION
AND
FORECLOSURE