PLEDGE MORTGAGE AND ANTICHRESIS (Articles 2058-2141 NCC)

Chapter 1. Provisions Common to Pledge and Mortgage (Arts. 2058-2092 NCC) Credit security Involves tangible security mas gusto ng bank (Personal/Real property) Personal as security - do it in a form a pledge or chattel mortgage Immovable REM real estate mortgage

Art. 2085. The following requisites are essential to the contracts of pledge and mortgage: TO BE VALID!(1) That they be constituted to secure the fulfillment of a principal obligation; - MUST BE VALID PO(2) That the pledgor or mortgagor be the absolute owner (at present) of the thing pledged or mortgaged; 3rd Party pledge/mortgage pwede pledgor not debtor kaya pwede! Cannot mortgage future property!!!

(3) That the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose. SPA agent!Third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property. (1857) SAF In case of default the creditor may run after the principal borrower by way of collection suit or foreclosure of pledge or mortgage Rights of creditor are exclusive, exclude the other when exercise oneArt. 2086. The provisions of Article 2052 are applicable to a pledge or mortgage. (n)

Art. 2087. It is also of the essence of these contracts that when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment to the creditor. (1858)

Art. 2088. The creditor cannot appropriate the things given by way of pledge or mortgage, or dispose of them. Any stipulation to the contrary is null and void. (1859a) Stipulation automatic owner (Pactum Commissorium) against public policy! the creditor who is the mortgagee has ONLY 1 right after the event of default RIGHT TO FORECLOSE!!!!!!! IF WANT TO ACQUIRE PROPERTY CANNOT BE BY STIPULATION; CAN BE BY AUCTION SALE. Creditor is declared owner at the expiration of redemption period

Art. 2089. A pledge or mortgage is indivisible, even though the debt may be divided among the successors in interest of the debtor or of the creditor. Contract of pledge/mortgage is INDIVISIBLE!!!! Always taken as 1 or whole!!!! Example 1 real estate mortgage subject of many real estate Cannot give partial release of real estate mortgage Cancel old RM and constitute new RM for remaining parcels of land if not that is unsafe & unsound Banking practice INDIVISIBLE!!!! Kasi!!!! Both spouses must sign RM if not VOID! Pirma dapat sa harapan mo!