Art. 565.

The rights and obligations of the

USUFRUCT usufructuary shall be those provided in the title
constituting the usufruct; in default of such title, or
in case it is deficient, the provisions contained in the
USUFRUCT IN GENERAL two following Chapters shall be observed. (470)
Art. 562. Usufruct gives a right to enjoy the property
of another with the obligation of preserving its form RULES GOVERNING A USUFRUCT
and substance, unless the title constituting it or the
law otherwise provides. (467) 1. The agreement of the parties or the title giving the
usufruct
2. In case of deficiency, apply the Civil Code
CONCEPT AND DEFINITION OF USUFRUCT
 Right to enjoy the property of another, with the RIGHTS OF THE USUFRUCTUARY
obligation of preserving its form and substance, unless
the title containing it or the law provides otherwise Art. 566. The usufructuary shall be entitled to all the
natural, industrial and civil fruits of the property in
 Formula: jus utendi and jus fruendi equals usufruct; jus
usufruct. With respect to hidden treasure which may
disponendi equals naked ownership
be found on the land or tenement, he shall be
considered a stranger. (471)
CHARACTERISTICS OR ELEMENTS OF USUFRUCT
1. Essential characteristics SHARE OF USUFRUCTUARY REGARDING HIDDEN
a. It is a real right TREASURE

b. It is of temporary nature or duration  This means that the usufructuary, not being the
landowner, is not entitled as owner, but is entitled as
c. Its purpose is to enjoy the benefits and derive the finder—to ½ of the treasure as a rule, unless there is a
advantages from the object as a consequence of normal contrary agreement—if he is really the finder
use or exploitation  If somebody else is the finder, the usufructuary gets
nothing
2. Natural characteristics—obligation of conserving and Art. 567. Natural or industrial fruits growing at the
preserving the form and substance of the thing time the usufruct begins, belong to the usufructuary.
Those growing at the time the usufruct terminates,
3. Accidental characteristics—those which may be belong to the owner.
present or absent depending upon the stipulation of the In the preceding cases, the usufructuary, at the
parties beginning of the usufruct, has no obligation to
refund to the owner any expenses incurred; but the
OBJECT OF USUFRUCT owner shall be obliged to reimburse at the
termination of the usufruct, from the proceeds of the
1. May be real or personal property growing fruits, the ordinary expenses of cultivation,
2. May be sterile or productive for seed, and other similar expenses incurred by the
3. May be created over a right usufructuary.
Art. 563. Usufruct is constituted by law, by the will of The provisions of this article shall not prejudice the
private persons expressed in acts inter vivos or in a rights of third persons, acquired either at the
last will and testament, and by prescription. (468)
beginning or at the termination of he usufruct. (472)

CLASSIFICATION OF USUFRUCT AS TO ORIGIN PENDING NATURAL OR INDUSTRIAL FRUITS RULES

1. Legal—created by law 1. FRUITS PENDING AT THE BEGINNING OF
2. Voluntary or conventional
USUFRUCT
a. Created by the will of the parties inter vivos
a. Belong to the usufructuary
b. Created mortis causa
b. No necessity of refunding owner for expenses
3. Mixed
incurred
Art. 564. Usufruct may be constituted on the whole c. But without prejudice to the right of third persons
or a part of the fruits of the thing, in favor of one 2. FRUITS PENDING AT THE TERMINATION OF
more persons, simultaneously or successively, and USUFRUCT
in every case from or to a certain day, purely or a. Belong to the owner
conditionally. It may also be constituted on a right, b. But the owner must reimburse the usufructuary for
provided it is not strictly personal or intransmissible. ordinary cultivation expenses and for the seeds and
(469) similar expenses, from the proceeds of the fruits
c. Also, rights of third persons shouldn’t be prejudiced
CLASSIFICATION OF USUFRUCT ACCORDING TO Art. 568. If the usufructuary has leased the lands or
QUANTITY OR EXTENT tenements given in usufruct, and the usufruct
should expire before the termination of the lease, he
1. As to fruits—total or partial
or his heirs and successors shall receive only the
2. As to object—universal or particular
proportionate share of the rent that must be paid by
the lessee. (473)
CLASSIFICATION OF USUFRUCT AS TO THE
NUMBER OF PERSONS ENJOYING THE RIGHT
RULE WHEN USUFRUCTUARY LEASES PROPERTY
1. Simple TO ANOTHER
2. Multiple
 As a rule, the lease executed by the usufructuary
a. Simultaneous
should terminate at the end of the usufruct or earlier
b. Successive
 Except in case of leases of rural lands, because in shall have the right to make use thereof in
said case, if usufruct ends earlier than the lease, the accordance with the purpose for which they are
lease continues for the remainder of the agricultural year intended, and shall not be obliged to return them at
the termination of the usufruct except in their
Art. 569. Civil fruits are deemed to accrue daily, and condition at that time; but he shall be obliged to
belong to the usufructuary in proportion to the time indemnify the owner for any deterioration they may
the usufruct may last. (474) have suffered by reason of his fraud or negligence.
Art. 570. Whenever a usufruct is constituted on the (481)
right to receive a rent or periodical pension, whether
in money or in fruits, or in the interest on bonds or ABNORMAL USUFRUCT ON THINGS THAT
securities payable to bearer, each payment due shall DETERIORATE
be considered as the proceeds or fruits of such
right. Whenever it consists in the enjoyment of  It is true that all things deteriorate but there are some
benefits accruing from a participation in any things that deteriorate much faster than others
industrial or commercial enterprise, the date of the
distribution of which is not fixed, such benefits shall EFFECT OF DETERIORATION ON THE
have the same character. USUFRUCTUARY’S LIABILITY:
In either case they shall be distributed as civil fruits,
and shall be applied in the manner prescribed in the IF THESE FAST DETERIORATING THINGS
preceding article. (475)  Deteriorate because of normal use, the usufructuary is
not responsible
RULE AS TO CERTAIN RIGHTS—RENT, PENSION,  Deteriorate because of an event or act that endangers
BENEFITS, ETC. their preservation, then even though there was no fault
or negligence or fraud on the part of the usufructuary, he
 The things referred to in Article 570 are considered is still required to make the necessary or ordinary
civil fruits and shall be deemed to accrue proportionately expenses
to the naked owner and usufructuary, for the time the
 Deteriorate because of fraud or negligence, the
usufruct lasts
usufructuary is responsible
Art. 571. The usufructuary shall have the right to Art. 574. Whenever the usufruct includes things
enjoy any increase which the thing in usufruct may
which cannot be used without being consumed, the
acquire through ccession, the servitudes
usufructuary shall have the right to make use of
established in its favor, and, in general, all the
them under the obligation of paying their appraised
benefits inherent therein. (479)
value at the termination of the usufruct, if they were
appraised when delivered. In case they were not
INCREASES IN THE THING HELD IN USUFRUCT appraised, he shall have the right to return at the
same quantity and quality, or pay their current price
1. Accessions
at the time the usufruct ceases. (482)
2. Servitudes and easements
3. All benefits inherent in the property
ABNORMAL USUFRUCT ON CONSUMABLE
THINGS/QUASIUSUFRUCT
REASON
 The form and substance is not really preserved
1. Entire jus fruendi and
2. Entire jus utendi  Another instance of abnormal usufruct

Art. 572. The usufructuary may personally enjoy the RULES FOR THIS QUASI-USUFRUCT
thing in usufruct, lease it to another, or alienate his
right of usufruct, even by a gratuitous title; but all 1. The usufructuary can use them
the contracts he may enter into as such usufructuary 2. But at the end of the usufruct, he must
shall terminate upon the expiration of the usufruct, a. Pay the appraised value
saving leases of rural lands, which shall be b. Or if there was no appraisal, return the same kind,
considered as subsisting during the agricultural quality, or quantity OR pay the price current at the
year. (480) termination of the usufruct
Art. 575. The usufructuary of fruit-bearing trees and
RIGHTS WITH REFERENCE TO THE THING ITSELF shrubs may make use of the dead trunks, and even
1. He may personally enjoy the thing of those cut off or uprooted by accident, under the
2. He may lease the thing to another obligation to replace them with new plants. (483a)
Art. 576. If in consequence of a calamity or
RIGHTS WITH REFERENCE TO THE extraordinary event, the trees or shrubs shall have
USUFRUCTUARY RIGHT ITSELF disappeared in such considerable number that it
would not be possible or it would be too
1. He may alienate the usufructuary right burdensome to replace them, the usufructuary may
2. He may pledge or mortgage the usufructuary right but leave the dead, fallen or uprooted trunks at the
he cannot pledge or mortgage the thing itself because disposal of the owner, and demand that the latter
he doesn’t own the thing remove them and clear the land. (484a)

AMPIL QUESTION: CAN USUFRUCTUARY EXTEND A Art. 577. The usufructuary of woodland may enjoy all
CONTRACT AND NOT BE COTERMINOUS WITH THE the benefits which it may produce according to its
USUFRUCT? nature. If the woodland is a copse or consists of
timber for building, the usufructuary may do such
Art. 573. Whenever the usufruct includes things ordinary cutting or felling as the owner as in the
which, without being consumed, gradually habit of doing, and in default of this, he may do so in
deteriorate through wear and tear, the usufructuary
accordance with the custom of the place, as to the instead in the absence of contrary stipulation in favor of
manner, amount and season. the naked owner, otherwise, it is as if the usufructuary
would be entitled to a partial refund is case
In any case the felling or cutting of trees shall be
made in such manner as not to prejudice the
preservation of the land. n nurseries, the REQUISITES BEFORE A SET-OFF CAN BE MADE
usufructuary may make the necessary thinnings in 1. The damage must have been caused by the
order that the remaining trees may properly grow. ith usufructuary
the exception of the provisions of the preceding 2. The improvements must have augmented the value of
paragraphs, the usufructuary cannot cut down trees the property
unless it be to restore or improve some of the things
in usufruct, and in such case shall first inform the Art. 581. The owner of property the usufruct of which
owner of the necessity for the work. (485) is held by another, may alienate it, but he cannot
alter its form or substance, or do anything thereon
Art. 578. The usufructuary of an action to recover which may be prejudicial to the usufructuary. (489)
real property or a real right, or any movable
property, has the right to bring the action and to
oblige the owner thereof to give him the authority for ALIENATION BY NAKED OWNER
this purpose and to furnish him whatever proof he  Since the jus disponendi and the title reside with the
may have. If in consequence of the enforcement of naked owner, he retains the right to alienate the property
the action he acquires the thing claimed, the but
usufruct shall be limited to the fruits, the dominion o He cannot alter its form and substance
remaining with the owner. (486) o Or do anything prejudicial to the usufructuary

USUFRUCT OF AN ACTION TO RECOVER THROUGH A BUYER MUST RESPECT THE USUFRUCT IN CASE
THE COURTS IT IS REGISTERED OR KNOWN TO HIM RULE IN
This special usufruct deals with the right to recover by CASE OF SUCCESSION
court action  If the naked owner bequeathes or devises to another
1. Real property through a will, the legatee or devisee must respect the
2. Personal property usufruct
3. Real right over personal property or real property
DOUBLE SALE BY NAKED OWNER
WHAT THE USUFRUCTUARY CAN DEMAND
 The naked owner is ordinarily not allowed to sell the
1. Authority to bring the action
usufruct to another after having sold it first to the
2. Proofs needed for a recovery
usufructuary but if he does so, the rules on double sales
applies
EFFECT OF JUDGMENT
1. Its naked ownership belongs to the owner OTHER RIGHTS OF THE NAKED OWNER
2. Its usufruct belongs to him
 Aside from the right of the naked owner to alienate the
Art. 579. The usufructuary may make on the property property, he may also—
held in usufruct such useful improvements or a. Construct any works
expenses for mere pleasure as he may deem proper, b. And make any improvements
provided he does not alter its form or substance; but c. Or make planting thereon if rural but always, such acts
he shall have no right to be indemnified therefor. He must not cause—
may, however, remove such improvements, should it i. Decrease in the value of the usufruct
be possible to do so without damage to the property. ii. Or prejudice the right of the usufructuary
(487)
Art. 582. The usufructuary of a part of a thing held in
common shall exercise all the rights pertaining to
USEFUL AND LUXURIOUS IMPROVEMENTS the owner thereof with respect to the administration
and the collection of fruits or interest. Should the co-
 The usufructuary has the right to the following—
ownership cease by reason of the division of the
1. Useful improvements
thing held in common, the usufruct of the part
2. Luxurious improvements
allotted to the co-owner shall belong to the
 But usufructuary. (490)
1. He must not alter the form or substance of the
property held in usufruct
2. He is not entitled to a refund but he may USUFRUCTUARY OF A PART OF COMMON
a. Either remove the improvements if no substantial PROPERTY
damage to the property in usufruct is caused
 A co-owner may give the usufruct of his share to
b. Or set off the improvements against damages for
another, even without the consent of the others, unless
which he may be liable
personal considerations are present
Art. 580. The usufructuary may set off the  The usufructuary in such a case takes the owner’s
improvements he may have made on the property place as to the administration and collection of fruits and
against any damage to the same. (488) interest

RIGHT TO SET-OFF IMPROVEMENTS RULES EFFECT OF PARTITION

1. If damage exceeds the value of the improvements, 1. If there be a partition, the usufructuary continues to
usufructuary is still liable for the difference have the usufruct of the part allotted to the co-owner
2. If the value of the improvements exceeds the damage, concerned
the difference doesn’t go to the usufructuary but accrues 2. If the co-owners make a partition, without the
instruction of the usufructuary, this is all right, and the EFFECT IF NO ONE WILL BE INJURED
partition binds said
usufructuary  The exemption being dependent on the naked owner
N.B  In case the naked owner refuses to make the
1. The usufructuary can use entire property—no co- exemption, appeal may be made to the courts and the
owner owns or has a stake over a specific portion judge should consider all the circumstances in deciding
2. When usufructuary buys property, there would be whether or not to give the grant
extinguishment of usufruct since there would be a Art. 586. Should the usufructuary fail to give security
merger or confusion of rights in the cases in which he is bound to give it, the
owner may demand that the immovables be placed
OBLIGATIONS OF THE USUFRUCTUARY under administration, that the movables be sold, that
the public bonds, instruments of credit payable to
Art. 583. The usufructuary, before entering upon the
order or to bearer be converted into registered
enjoyment of the property, is obliged:
certificates or deposited in a bank or public
(1) To make, after notice to the owner or his
institution, and that the capital or sums in cash and
legitimate representative, an inventory of all the
the proceeds of the sale of the movable property be
property, which shall contain
invested in safe securities.
an appraisal of the movables and a description of
the condition of the immovables; The interest on the proceeds of the sale of the
(2) To give security, binding himself to fulfill the movables and that on public securities and bonds,
obligations imposed upon him in accordance with and the proceeds of the property placed under
this Chapter. (491) administration, shall belong to the usufructuary.
Furthermore, the owner may, if he so prefers, until
OBLIGATION RE: INVENTORY AND THE SECURITY the usufructuary gives security or is excused from
so doing, retain in his possession the property in
 They are not necessary before the right to the usufruct usufruct as administrator, subject to the obligation
begins to deliver to the usufructuary the net proceeds
 They are merely necessary before physical thereof, after deducting the sums which may be
possession and enjoyment of property can be had, thus agreed upon or judicially allowed him for such
if the usufructuary fails to give security the usufruct still administration. (494)
begins but the naked owner will have the rights granted
him under Article 586 EFFECT OF FAILURE TO GIVE SECURITY ON THE
 There could be usufruct without physical possession RIGHTS OF THE NAKED OWNER

REQUIREMENTS FOR MAKING OF THE INVENTORY 1. He may deliver the property to the usufructuary
2. Or the naked owner may choose retention of the
1. The owner must be previously notified property as administrator
2. The condition of the immovables must be described 3. Or the naked owner may demand receivership or
3. The movables must be appraised administration of the real property, sale of movable,
4. As a rule, no form is required except where there are conversion or deposit of credit instruments, etc.
real properties
5. Expenses are to be borne by the usufructuary ON THE RIGHTS OF THE USUFRUCTUARY
6. Effect of not making inventory—same as when the
security isn’t given 1. The usufructuary cannot possess the property until he
7. When inventory not required gives the security
a. When no one will be injured thereby provided that the 2. The usufructuary cannot administer the property
naked owner consents hence he cannot a lease thereon
b. In case of waiver by the naked owner or the law or 3. The usufructuary cannot collect credits that have
where matured, nor invest them unless the Court or naked
there is stipulation in contract or will owner consents
4. But the usufructuary can alienate his right to the
THE GIVING OF SECURITY: EXEMPTIONS usufruct

1. When no one will be injured thereby RETENTION OF PROPERTY BY NAKED OWNER

2. When there is waiver by the naked owner or there is
stipulation in a will or contract  Although the owner may demand the sale of
3. When the usufructuary is the donor of the property movables, still he may want to retain some of them for
4. Where there is parental usufruct their artistic worth or sentimental value, in which case,
5. When there is caucion juratoria, which takes place of he may demand their delivery to him provided he gives
the bond, and is made by taking an oath to fulfill properly security for the payment of legal interest on their
the duties of a usufructuary but this is available only appraised value
under conditions prescribed
Art. 587. If the usufructuary who has not given
Art. 584. The provisions of No. 2 of the preceding security claims, by virtue of a promise under oath,
article shall not apply to the donor who has reserved the delivery of the furniture necessary for his use,
the usufruct of the property donated, or to the and that he and his family be allowed to live in a
parents who are usufructuaries of their children's house included in the usufruct, the court may grant
property, except when the parents contract a second this petition, after due consideration of the facts of
marriage. (492a) the case. The same rule shall be observed with
respect to implements, tools and other movable
Art. 585. The usufructuary, whatever may be the title property necessary for an industry or vocation in
of the usufruct, may be excused from the obligation which he is engaged. If the owner does not wish that
of making an nventory or of giving security, when no certain articles be sold because of their artistic
one will be injured thereby. (493) worth or because they have a sentimental value, he
may demand their delivery to him upon his giving
security for the payment of the legal interest on their them after demand by the owner, the latter may
appraised value. (495) make them at the expense of the usufructuary. (500)

CAUCION JURATORIA DUTY TO MAKE ORDINARY REPAIRS

 Promise under oath 1. They are required by normal or natural use

 Sworn duty to take good care of the property and 2. They are needed for preservation
return the same at the end of the usufruct 3. They must have occurred during the usufruct
4. They must have happened with or without the fault of
RESTRICTION ON USUFRUCTUARY the usufructuary

 He cannot alienate or lease the property for this CAN USUFRUCTUARY EXEMPT HIMSELF FROM THE
means he doesn’t need them DUTY TO MAKE OR PAY FOR THE NECESSARY
REPAIRS BY RENOUNCING THE USUFRUCT?
Art. 588. After the security has been given by the
usufructuary, he shall have a right to all the  If he had no fault, yes, but he must surrender the fruits
proceeds and benefits from the day on which, in received
accordance with the title constituting the usufruct,  If he was at fault, no
he should have commenced to receive them. (496)
REMEDY IF USUFRUCTUARY DOESN’T MAKE THE
RETROACTIVE EFFECT OF THE SECURITY GIVEN NECESSARY REPAIRS
Art. 589. The usufructuary shall take care of the  If naked owner had demanded the repair, and the
things given in usufruct as a good father of a family. usufructuary still fails to do so, the owner may make
(497) them at the expense of the usufructuary

DUTY OF USUFRUCTUARY TO TAKE CARE OF Art. 593. Extraordinary repairs shall be at the
PROPERTY expense of the owner. The usufructuary is obliged to
notify the owner when the need for such repairs is
1. Usufruct is not terminated or extinguished by bad use urgent. (501)
2. The usufructuary is required to make ordinary repairs
in the exercise of prudent care and to notify the owner of IT IS THE DUTY OF THE NAKED OWNER TO MAKE
urgency of extraordinary repairs and of any acts which EXTRAORDINARY REPAIRS
may prove detrimental to ownership
Art. 594. If the owner should make the extraordinary
Art. 590. A usufructuary who alienates or leases his repairs, he shall have a right to demand of the
right of usufruct shall answer for any damage which usufructuary the legal interest on the amount
the things in usufruct may suffer through the fault or expended for the time that the usufruct lasts. Should
negligence of the person who he not make them when they are indispensable for
substitutes him. (498) the preservation of the thing, the usufructuary may
make them; but he shall have a right to demand of
LIABILITY OF USUFRUCTUARY FOR ACTS OF THE the owner, at the termination of the usufruct, the
SUBSTITUTE increase in value which the immovable may have
acquired by reason of the repairs. (502a)
 The usufructuary is made liable for the acts of the
substitute
KINDS OF EXTRAORDINARY REPAIRS
 Therefore, the substitute is liable to the usufructuary
while the usufructuary becomes liable to the owner 1. Those caused by natural use but not needed for
 Even when there is sub-usufructuary, it is still the preservation
usufructuary who answers to the naked owner 2. Those caused by abnormal or exceptional
circumstances and needed for preservation
Art. 591. If the usufruct be constituted on a flock or
3. Those caused by abnormal or exceptional
herd of livestock, the usufructuary shall be obliged
circumstances but are not needed for preservation
to replace with the young thereof the animals that
die each year from natural causes, or are lost due to Art. 595. The owner may construct any works and
the rapacity of beasts of prey. If the animals on make any improvements of which the immovable in
which the usufruct is constituted should all perish, usufruct is susceptible, or make new plantings
without the fault of the usufructuary, on account of thereon if it be rural, provided that such acts do not
some contagious disease or any other uncommon cause a diminution in the value of the usufruct or
event, the usufructuary shall fulfill his obligation by prejudice the right of the usufructuary. (503)
delivering to the owner the remains which may have
been saved from the misfortune. Should the herd or
CONSTRUCTIONS, IMPROVEMENTS, AND
flock perish in part, also by accident and
PLANTINGS BY THE NAKED OWNER
without the fault of the usufructuary, the usufruct
shall continue on the part saved. Should the  Provided that the value of the usufruct is not
usufruct be on sterile animals, it shall be considered, diminished OR the right of the usufructuary is not
with respect to its effects, as though constituted on prejudiced
fungible things. (499a)
Art. 596. The payment of annual charges and taxes
Art. 592. The usufructuary is obliged to make the and of those considered as a lien on the fruits, shall
ordinary repairs needed by the thing given in be at the expense of the usufructuary for all the time
usufruct. By ordinary repairs are understood such that the usufruct lasts. (504)
as are required by the wear and tear due to the
natural use of the thing and are indispensable for its
WHAT CHARGES OR TAXES THE USUFRUCTUARY
preservation. Should the usufructuary fail to make
MUST PAY
 The annual charges on the fruits may have knowledge, that may be prejudicial to the
 The annual taxes on the fruits rights of ownership, and he shall be liable should he
 Annual taxes on the land not do so, for damages, as if they had been caused
Art. 597. The taxes which, during the usufruct, may through his own fault. (511)
be imposed directly on the capital, shall be at the
expense of the owner. If the latter has paid them, the WHEN NOTIFICATION BY THE USUFRUCTUARY IS
usufructuary shall pay him the proper interest on the REQUIRED
sums which may have been paid in that character;
and, if the said sums have been advanced by the 1. If a third party commits acts prejudicial to the rights of
usufructuary, he shall recover the amount thereof at the ownership
the termination of the usufruct. (505) 2. If urgent repairs are needed
3. If an inventory is to be made
TAXES WHICH ARE IMPOSED DIRECTLY ON THE
CAPITAL EFFECT OF NON-NOTIFICATION

1. If paid by the naked owner, he can demand legal 1. The usufructuary is liable for damages, as if they had
interest on the sum paid been caused through his own fault.
2. If advanced by the usufructuary— 2. The usufructuary cannot even make the extraordinary
a. Should be reimbursed the amount paid but without the repairs needed
legal interest 3. The inventory can go on but the naked owner may
b. Is entitled to retention until paid later point out discrepancies and omissions in the
inventory
Art. 598. If the usufruct be constituted on the whole
of a patrimony, and if at the time of its constitution Art. 602. The expenses, costs and liabilities in suits
the owner has debts, the provisions of Articles 758 brought with regard to the usufruct shall be borne by
and 759 relating to donations shall be applied, both the usufructuary. (512)
with respect to the maintenance of the usufruct and
to the obligation of the usufructuary to pay such EXTINGUISHMENT OF USUFRUCT
debts. The same rule shall be applied in case the
owner is obliged, at the time the usufruct is Art. 603. Usufruct is extinguished:
constituted, to make periodical payments, even if (1) By the death of the usufructuary, unless a
there should be no known capital. (506) contrary intention clearly appears;
(2) By the expiration of the period for which it was
constituted, or by the fulfillment of any resolutory
WHEN USUFRUCTUARY HAS TO PAY FOR THE condition provided in the title creating the usufruct;
DEBTS OF THE NAKED OWNER (3) By merger of the usufruct and ownership in the
Art. 599. The usufructuary may claim any matured same person;
credits which form a part of the usufruct if he has (4) By renunciation of the usufructuary;
given or gives the proper security. If he has been (5) By the total loss of the thing in usufruct;
excused from giving security or has been able to (6) By the termination of the right of the person
give it, or if that given is not sufficient, he shall need constituting the usufruct;
the authorization of the owner, or of the court in (7) By prescription. (513a)
default thereof, to collect such credits. The
usufructuary who has given security may use the DEATH OF THE USUFRUCTUARY ENDS THE
capital he has collected in any manner he may deem USUFRUCT.
proper. The usufructuary who has not given security
shall invest the said capital at interest upon EXCEPTIONS:
agreement with the owner; in default of such 1. In the case of multiple usufructs
agreement, with 2. In case there is period fixed based on the number of
judicial authorization; and, in every case, with years that would elapse before a person would reach a
security sufficient to preserve the integrity of the certain age
capital in usufruct. (507) 3. In case the contrary intention clearly appears
Art. 604. If the thing given in usufruct should be lost
RULES ON USUFRUCT OF A MATURED CREDIT only in part, the right shall continue on the
remaining part. (514)
1. If usufructuary hasn’t given security, or when he is
exempted or where was only a caucion juratoria,
collection and investment can be done only with the EFFECT OF PARTIAL LOSS
approval of the court or of the naked owner Art. 605. Usufruct cannot be constituted in favor of a
2. If usufructuary has given security, collection and town, corporation, or association for more than fifty
investments can be done without the approval of the years. If it has been constituted, and before the
court or of the nsked owner expiration of such period the town is abandoned, or
Art. 600. The usufructuary of a mortgaged the corporation or association is dissolved, the
immovable shall not be obliged to pay the debt for usufruct shall be extinguished by reason thereof.
the security of which the mortgage was constituted. (515a)
Should the immovable be attached or sold judicially Art. 606. A usufruct granted for the time that may
for the payment of the debt, the owner shall be liable elapse before a third person attains a certain age,
to the usufructuary for whatever the latter may lose shall subsist for the number of years specified, even
by reason thereof. (509) if the third person should die before the period
expires, unless such usufruct has been expressly
USUFRUCT OF MORTGAGED IMMOVABLE granted only in consideration of the existence of
such person. (516)
Art. 601. The usufructuary shall be obliged to notify
the owner of any act of a third person, of which he
USUFRUCT FOR THE TIME THAT MAY ELAPSE a. If the owner constructs a new building, the usufruct
BEFORE A THIRD PERSON REACHES A CERTAIN continues on the new building
AGE b. If the owner doesn’t construct a new building or
rebuild, the naked owner gets the insurance indemnity
Art. 607. If the usufruct is constituted on immovable but should
property of which a building forms part, and the pay the interest thereon to the usufructuary
latter should be destroyed in any manner
whatsoever, the usufructuary shall have a right to 2. If the naked owner pays alone for the insurance and
make use of the land and the materials. the usufructuary has refused to share
The same rule shall be applied if the usufruct is a. The naked owner gets the whole indemnity
constituted on a building only and the same should be b. If usufruct was on the building and the land, the
destroyed. But in such a case, if the owner should wish usufruct continues on the land and the materials
to construct another building, he shall have a right to
occupy the land and to make use of the materials, being c. If usufruct was on the building alone the naked owner
obliged to pay to the usufructuary, during the may rebuild, with or without the approval of the
continuance of the usufruct, the interest upon the sum usufructuary, but he must pay interest on the value of
equivalent to the value of the land and of the materials. the land and the old materials that may have been used
(517) 3. If the naked owner alone paid for the insurance but
there is failure or omission
USUFRUCT ON A BUILDING AND/OR LAND a. The effect is the same as if there was sharing but the
CONCERNED THIS ARTICLE DISTINGUISHES usufructuary must reimburse the naked owner his share
BETWEEN: of the insurance premium
1. A usufruct constituted both on the building and on the 4. If the usufructuary alone pays the insurance premium
land a. The insurance indemnity goes to the usufructuary
2. And a usufruct constituted only on the building alone, with no obligation on his part to share the
indemnity with, nor give legal interest thereon to, the
RULES naked owner
b. The usufruct no doubt continues on the land for the
1. Usufruct on both the building and land but the building remaining period of the usufruct
is destroyed in any manner whatsoever before the c. The usufructuary has no obligation to construct an
expiration of the period of the usufruct new building or to rebuild
a. The usufruct on the building is ended, but the usufruct
on the land continues Art. 609. Should the thing in usufruct be
b. Therefore the usufructuary is still entitled to the use of expropriated for public use, the owner shall be
the land and the use of whatever materials of the house obliged either to replace it with another thing of the
remain same value and of similar conditions, or to pay the
c. Therefore, also, if the naked owner wants to rebuild usufructuary the legal interest on the amount of the
but the usufructuary refuses, it is the usufructuary who indemnity for the whole period of the usufruct. If the
prevails for the use of the land is still his for the owner chooses the latter alternative, he shall give
remainder of the period security for the payment of the interest. (519)
2. Usufruct on the building alone
a. The usufruct on the building ends, but the RULES IN CASE OF EXPROPRIATION
usufructuary can still make use of whatever materials on
the house remain 1. If naked owner alone was given the indemnity, he has
b. Also, the usufructuary is entitled to the use of the land the option
c. But precisely because there was no usufruct on the a. To replace with equivalent thing
land, the naked owner has preferential right to its use b. Or to pay to the usufructuary the legal interest on the
usufruct
Art. 608. If the usufructuary shares with the owner 2. If both the naked owner and the usufructuary were
the insurance of the tenement given in usufruct, the separately given indemnity, each owns the indemnity
former shall, in case of loss, continue in the given to him, the usufruct is totally extinguished
enjoyment of the new building, should one be 3. If usufructuary alone was given the indemnity, he
constructed, or shall receive the interest on the must give it to the naked owner and compel the latter to
insurance indemnity if the owner does not wish to return either the interest or to replace the property
rebuild. Should the usufructuary have refused to
contribute to the insurance, the owner insuring the Art. 610. A usufruct is not extinguished by bad use
tenement alone, the latter shall receive the full of the thing in usufruct; but if the abuse should
amount of the insurance indemnity in case of loss, cause considerable injury to the owner, the latter
saving always the right granted to the usufructuary may demand that the thing be delivered to him,
in the preceding article. (518a) binding himself to pay annually to the usufructuary
the net proceeds of the same, after deducting the
expenses and the compensation which may be
PAYMENT OF INSURANCE ON THE TENEMENT allowed him for its administration. (520)
HELD IN USUFRUCT

 This article distinguishes between a case where both EFFECT OF BAD USE ON THE PROPERTY HELD IN
the usufructuary and the naked owner share in the USUFRUCT
payment of the insurance premium, and a case where it
is only the naked owner who pays because the 1. Bad use—which doesn’t cause considerable injury to
usufructuary refused the naked owner
2. Bad use—which causes considerable injury to the
naked owner
RULES: a. Usufruct continues but naked owner can demand
1. If the naked owner and the usufructuary share in the delivery to and administration by him but he will be
premiums—and the property is destroyed obliged to pay
net proceeds to usufructuary
Art. 611. A usufruct constituted in favor of several
persons living at the time of its constitution shall not
be extinguished until death of the last survivor. (521)

RULES IN CASE OF MULTIPLE USUFRUCT

1. If constituted simultaneously, it is evident that all the
usufructuaries must be alive at the time of constitution.
Here, it is
the death of the last survivor which, among other cases,
terminates the usufruct
2. If constituted successively, Article 611 also applies
a. If the successive usufructs were constituted by virtue
of the donation, all the donees-usufructuaries must be
living
at the time of the constitution-donation of the usufruct
b. If the successive usufructs were constituted by virtue
of a last will, there should only be two successive
usufructuaries, and both must have been alive at the
time of the testator’s death
Art. 612. Upon the termination of the usufruct, the
thing in usufruct shall be delivered to the owner,
without prejudice to the right of retention pertaining
to the usufructuary or his heirs for taxes and
extraordinary expenses which should be
reimbursed. After the delivery has been made, the
security or mortgage shall be cancelled. (522a)

RIGHTS AND OBLIGATIONS AT THE TERMINATION

OF THE USUFRUCT
1. On the part of the usufructuary
a. Must return the property to the naked owner
b. To retain the property till he is reimbursed for taxes on
the capital and indispensable extraordinary repairs and
expenses
c. To remove removable improvements or set them off
against damages he has caused
2. On the part of the naked owner
a. Must cancel the security or mortgage
b. Must in case of rural leases, respect leases made by
the usufructuary till the end of the agricultural year
c. Make reimbursements to the usufructuary in the
proper cases