ANTICHRESIS

 Where the creditor

acquires the ® to
receive the fruits of
an immovable of his
debtor
 With an obligation to
apply them to the
payment of
 (1) interest, if owing,
and thereafter to the
 (2) principal
Characteristics
 Accessory
 Formal
 Nominate
 Consensual

Parties
Essential requisites (-d)
 antichresis pledge
 refersto fruits  refers to fruits
of real property of real property
 perfected by
 perfected by
consent
consent
AC real mortgage
 Property is  Debtor retains
delivered to the possession
creditor
 Creditor does not
 Creditor acquires ® have any ® to
only to receive receive fruits
fruits
But
 Express stipulation
creates ® over the
that DEBTOR will
property enforceable
give CREDITOR the
to the whole world
property to apply
the fruits to pay
interest

to be AC it must be expressly agreed between parties that property

was used as security for his debt and he is to apply the fruits to the
payment and interest thereafter to the principal.
 Art. 2133 : Prevailing market value at the time of the application.

 Art. 2134 VOID IF AMOUNT OF p AND I IS NOT IN WRITING

 2335 OBLIGATIONS OF CREDITOR (TAXES, NECESSARY EXPENSES)

 2136 REACQUISITION OF PROPERTY

IF CREDITOR DO NOT WANT TO PAY TAXES HE CAN COMPEL DEBETOR TO REACQUIRE THE PROPERTY EXCEPT IF WITH STIPULATION TO THE CONTRARY

2137 NO ACQUISITION IF UNPAID. EVERY STIPULATION TO THE CONTRARY IS VOID.

 Concurrence &
Preference
of Credits

The civil code establishes this system in the context of

Insolvency proceedings, in order to properly recognize
creditor’s rights, respect priority of claims, and ensure the
equitable treatment of similarly situated creditors.
CONCURRENCE OF CREDITS

It implies possession by two or

more creditors of equal right or
privileges over the same property
or all of the property of a debtor
PREFERENCE OF CREDIT
 It is the right held by a creditor to be
preferred in the payment of his claim
above other out of the debtor’s assets

 It does not necessarily create a lien on

property

 It is merely a method adopted to

determine and specify the order in which
credits should be paid
Concurrence of Credits

The property of debtor is subjected to the claims of two

or mode creditors and the value of such property is
insufficient to pay in full all the claims.

Necessarily, some creditors will not be paid or some

creditors will not obtain the full satisfaction of their
claims.
The claims of the creditors may be paid:

 Concurrently and Pro-rata:

proportional to the amount of the
respective claims/credits

 Preference of Credits established:

priority of payments are made for
which the creditors will be paid ahead of
others.
Concurrence and Preference of
Credits do not apply when?
 When the situation does not involve two or
more creditors having separate and distinct
claims against the same debtor who has
insufficient property.

 It only arises when the creditor cannot pay

his debts in full
Special Preferred Credits

Article 2241 to 2242 of the Civil Code:

Enumerate the special preferred credits that enjoy

preference with respect to specific movable and specific
immovable property of the debtor, and exclude all other
claims to the extent of the value of the affected property.

These claims are: mortgages, pledges of real or personal

property, or liens, within the purview of legal provisions
governing insolvency.
Classification of credits
1. Special preferred Credits
 Taxes – only taxes enjoy preference
All other claims listed in Article 2241-2242 all come after taxes;
they are not preferred and there in only concurrence of credits.

 Article 2241-2242 and Article 2246-2249 establish a two-tier

order of preference.

1. 1st tier- only taxes, duties and fees due on specific movable or
immovable of property
2. 2nd tier- all other special preferred credits; paid pro-rata out of
any residual value of the specific property to which such credit
relate

However, Section 136 of R.A. No. 10142 creates another tier in the
order of preference:
1. Trade-related claims of clients upon the trade related assets such
as cash, securities and trading rights.
 enjoys ABSOLUTE PRIORITY over other claims and amends in the
order of preference in Art. 2241 and 2242
2. Ordinary prefereed
Credits
 Article 2244 enumerates the ORDINARY PREFERRED
CREDITS
 Enjoy a preference but only as against the value of
property not otherwise subjected to special preferred
credit.
 Creates no liens on the specific property.
 Simply creates rights in favor of creditors to have the
free property of the debtor.
***special preferred credits take precedence over this.
 Art. 2244. With reference to other property, real and personal, of
the debtor, the following claims or credits shall be preferred in
the order named:
 (1) Proper funeral expenses for the debtor, or children under his
or her parental authority who have no property of their own,
when approved by the court;
 (2) Credits for services rendered the insolvent by employees,
laborers, or household helpers for one year preceding the
commencement of the proceedings in insolvency;
 (3) Expenses during the last illness of the debtor or of his or her
spouse and children under his or her parental authority, if they
have no property of their own;
 (4) Compensation due the laborers or their dependents under
laws providing for indemnity for damages in cases of labor
accident, or illness resulting from the nature of the employment;
 (5) Credits and advancements made to the debtor for support of
himself or herself, and family, during the last year preceding the
insolvency;
 (6) Support during the insolvency proceedings, and for three
months thereafter;
 (7) Fines and civil indemnification arising from a criminal
offense;
 (8) Legal expenses, and expenses incurred in the
administration of the insolvent’s estate for the common
interest of the creditors, when properly authorized and
approved by the court;
 (9) Taxes and assessments due the national government,
other than those mentioned in Articles 2241, No. 1, and
2242, No. 1;
 (10) Taxes and assessments due any province, other than
those referred to in Articles 2241, No. 1, and 2242, No. 1;
 (11) Taxes and assessments due any city or municipality,
other than those indicated in Articles 2241, No. 1, and
2242, No. 1;
 (12) Damages for death or personal injuries caused by a
quasi-delict;
 (13) Gifts due to public and private institutions of charity
or beneficence;
 (14) Credits which, without special privilege, appear in (a)
a public instrument; or (b) in a final judgment, if they have
been the subject of litigation. These credits shall have
preference among themselves in the order of priority of the
dates of the instruments and of the judgments,
respectively. (1924a)
ORDER OR PREFERENCE OF
CREDITS
3. Common Credits