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    Credit Transactions

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    Danica Zamora
    Credit transactions involve either a promise to pay or the provision of security to eliminate default risk. 1) Personal security like guaranties aim to ensure specific or substitute performance upon default. 2) Real security like collateral attachments create encumbrances or liens on property that allow foreclosure and payment from the sale of the property if default occurs. Requisites for real security include that it secures performance, the creditor has absolute ownership, and free disposal of the encumbered property. Foreclosure involves a notarial sale after notice and allows the creditor to recover the full price, with any surplus given to the debtor except when stipulated otherwise.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Credit Transactions

    Uploaded by

    Danica Zamora
    13 views5 pages
    Credit transactions involve either a promise to pay or the provision of security to eliminate default risk. 1) Personal security like guaranties aim to ensure specific or substitute performance upon default. 2) Real security like collateral attachments create encumbrances or liens on property that allow foreclosure and payment from the sale of the property if default occurs. Requisites for real security include that it secures performance, the creditor has absolute ownership, and free disposal of the encumbered property. Foreclosure involves a notarial sale after notice and allows the creditor to recover the full price, with any surplus given to the debtor except when stipulated otherwise.

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    Credit transactions notes

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    Credit transactions involve either a promise to pay or the provision of security to eliminate default risk. 1) Personal security like guaranties aim to ensure specific or substitute performance upon default. 2) Real security like collateral attachments create encumbrances or liens on property that allow foreclosure and payment from the sale of the property if default occurs. Requisites for real security include that it secures performance, the creditor has absolute ownership, and free disposal of the encumbered property. Foreclosure involves a notarial sale after notice and allows the creditor to recover the full price, with any surplus given to the debtor except when stipulated otherwise.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views5 pages

    Credit Transactions

    Uploaded by

    Danica Zamora
    Credit transactions involve either a promise to pay or the provision of security to eliminate default risk. 1) Personal security like guaranties aim to ensure specific or substitute performance upon default. 2) Real security like collateral attachments create encumbrances or liens on property that allow foreclosure and payment from the sale of the property if default occurs. Requisites for real security include that it secures performance, the creditor has absolute ownership, and free disposal of the encumbered property. Foreclosure involves a notarial sale after notice and allows the creditor to recover the full price, with any surplus given to the debtor except when stipulated otherwise.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Credit

    Transactions
    Creditolsecuritytransactions ,

    Promise to pay
    Transaction →
    1cmd ≤ to perform

    fulfillment
    security → to try eliminating \
    /
    transaction default risk enforcement

    1.
    ① Personal
    Eg
    -
    Guaranty , Nego Inst , insurance letters of credit
    ,
    .

    Specific , Substitute Equivalent performance


    ↳
    ,
    ,

    precision

    ② Real
    (attached
    Eg
    .
    collateral ,
    encumbrance ,
    lien
    to properties)
    C. Foreclosure → the

    [
    payment
    upon default

    2085 12139
    Requisites :
    ① secure performance
    ② absolute owner

    ③ Free disposal
    ☆ Ornery right to stop the
    Encumber?
    sale Just
    possession ? Alienate ? Add 't Requirements Foreclosure pay
    -
    .

    -
    Default -

    deficiency ? ✗

    |pLtDGE= YES ✗ Deliver to creditor/3rdperson Notarial sale Notice


    legal pledge ✓
    -
    -

    creditor
    - -

    Delivery is required w/ consent


    -

    delivery public Instrument to bind


    Bidding
    - - -
    -

    personal, pianos , n°ᵗP°"iᵗ"


    movable
    -
    can be 3rd Person
    - 3rd person -
    Desc [ Full Price @ once) -
    surplus ? CREDITOR
    personal prop
    .

    Escrow \
    except stipulated
    -

    Date
    -

    Securities Act
    ☆ Equity of
    redemption
    Default ✓
    Private sale
    deficiency ?
    SIGNED -30
    days
    -
    -
    - -

    |CHATl
    _

    Notice

    )
    YES YES Cert Of 09th -

    todays
    -
    Recto law ✗
    Mortgagor
    .

    MORTGAGE
    -

    Just notify creditor Aff Of GF - for 3rd persons -

    Extrajudicial -

    Return -30 days


    delivery
    .

    not necessary
    surp , , , ?
    -

    -
    owner
    Foreclosure
    3rd person can mortgage Cm
    Registry
    REGISTERED ≤ other ( (1-0)
    -

    PP '
    _
    ☆ FOR

    |ᵗ "ᵗ deficiency ?
    mortgagor YES YES
    -

    Register of Deeds
    -

    Judicial -

    order
    surplus ?
    MORTGAGE
    -
    w/ notice Atleast 90 days Mortgagor
    not more than 120
    - confirmation
    1E④
    ☆
    RBtp#
    real sale
    execution & application /\
    pngpgyy ,
    _

    3m05
    of proceeds lyr
    " " "" " "
    b.
    salelregi .

    ☆
    -
    Extra -
    J . -
    express authority ROR
    to sell ( SPA)
    ✗
    |*Nna+n€ YES writing
    in
    Creditor ( 'tsueesg)
    -

    ( publish
    -
    notice -

    (
    (principal
    interest
    port (3)

    otherwise , VOID ! public sale


    -

    ☆
    Right of redemption
    -

    right to buyback
    IMPORTANT NOTES

    ✓
    If there are multiple items pledged , Right to choose =
    PLEDGEE
    If the thing pledged not sold in the 1st & 2nd auction ,
    "
    was

    PLEDGEE has the right to appropriate the thing pledged .

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