Professional Documents
Culture Documents
COMMON TO
PLEDGE &
MORTGAGE
ALUA ANGELES CABRILLAS MOSLARES
PANLILIO
PLEDGE
A contract by virtue of which the debtor
delivers to the creditor or to a third person
a movable, or instrument evidencing
incorporeal rights for the purpose of
securing the fulfillment of the of a principal
obligation.
It is a real contract
It is an accessory contract
It is a unilateral contract
KINDS OF PLEDGE
Voluntary or conventional created
by agreement of parties
Legal created by operation of Law
ESSENTIAL REQUIREMENTS OF
PLEDGE AND MORTGAGE
Constituted to secure
principal obligation
fulfillment
of
ESSENTIAL REQUIREMENTS OF
PLEDGE AND MORTGAGE
Pledged or mortgaged
alienated to pay debt
may
be
sold
or
MORTGAGE
Constituted
on
immovable
Delivery is not necessary
Not valid against third
person if not registered
Sell the property
mortgaged without the
consent of the
mortgagee
Mortgage
Not allowed
PROMISE TO CONSTITUTE
PLEDGE OR MORTGAGE
Only gives rise to a personal right
The debtor can be compelled by the
creditor to fulfill his promise by
executing the pledge or mortgage.
PROVISIONS
APPLICABLE ONLY TO
PLEDGE
TRANSFER OF POSSESSION
Necessity of actual or physical delivery
Object of the Pledge
All movable within the commerce of men which
are susceptible of possession
Incorporeal rights evidenced by negotiable
instruments, bills of lading, shares of stock,
bonds, warehouse receipts, and similar
documents
FORM OF PLEDGE
Between Parties
May be in any form as in fact the mere
delivery of the object is sufficient to bind
the parties
As to third persons
The pledge must be in a public
instrument showing a description of the
thing pledged and the date of the pledge
RIGHTS OF THE
DEBTOR/PLEDGOR
Alienation of the thing pledged (Article 2097)
To continue to be the owner of the thing pledged unless it is
expropriated (Article 2103)
To ask that the thing pledged be judicially or extra judicially
deposited if it is used without authority or for a purpose other
than for its preservation (Article 2104)
To demand return of the thing pledged after he has paid the
debt and its interest with expenses in a proper case(Article
2105)
To ask for deposit of thing pledged (Article 2106)
To substitute the thing pledged (Article 2107)
OBLIGATIONS OF THE
DEBTOR/PLEDGOR
To pay the debt and its interest, with expenses in a proper
case, when they are due (Article 2105)
To pay damages that the pledgee may suffer by reason of
the flaws of the thing pledged, if he was aware of such
flaws but did not advise the pledgee of the same (Article
2101)
RIGHTS OF THE
CREDITOR/PLEDGEE
RIGHTS OF THE
CREDITOR/PLEDGEE
To cause sale of the thing pledged (Article 2108,
2112)
To demand substitute or immediate payment in
case he is deceived (Article 2109)
To collect and receive amount due on credit
pledged (Article 2118)
OBLIGATIONS OF THE
CREDITOR/PLEDGEE
To take care of the thing pledged with the diligence of a
good father of a family (Article 2099)
To be liable for the loss or deterioration of the thing
pledged unless it is due to fortuitous event (Article 2099)
Not to deposit thing pledged with another (Article 2100)
To be responsible for the acts of his agents or employees
with the respect of the thing pledged (Article 2100)
To deliver to the debtor the surplus after paying his claim
from what he has collected on a credit that was pledged
and which has become due before it is redeemed (Article
2118)
Extinguishment of Pledge
Direct cause
Return by pledgee of the thing pledged to the owner
(Article 2110)
Renunciation or abandonment in writing by the pledgee
of the pledge (Article 2111)
Sale of the thing pledge (Article 2112)
o
o
Price is more than the amount of the obligation, the debtor shall be
entitled to the excess, unless there is an agreement
Price is less, the creditor cannot recover the deficiency even if
stipulated (Article 2115)
LEGAL PLEDGE
Possessory lien by a possessor in good faith.
Possessory lien by a worker.
Depositarys right of retention