1.

Credit Transaction:

“Pledge and Mortgages”

PLEDGE – if it is MOVABLE.
MORTGAGE – if it is IMMOVABLE/ REAL PROPERTY/ REAL STATE MORTGAGE.

Article 2085:
- Provides the requisite essential- (absence of one, your contract of pledge or
mortgage become VOID.) to contracts of PLEDGE and MORTGAGE.
- [You can use 2085 as your legal bases, you can now, the pledge is not valid because
of the second essential requisite is not present.]

1. In the contract of pledge or mortgage, this contract are called ACCESSORY

CONTRACTS,

Why Accessory contract?

- They cannot stand without the principal contract or obligation.
Meaning dapat naay principal contract then e attached lang ng
pledge or mortgage.

Ex. CONTRACT OF LOAN. Mangutang ka then as a security or as a assurance na

makabayad ka, naa kay dapat e collateral or e pledge (sakyanan).

NOTE: if wala tong contract, principal obligation, or principal contract between

the two parties, wala tong imohang pledge, or walay pledge. There must be
something to which it is attached, which is the principal.

What if the principal contract is void, is the pledge or the mortgage as an

accessory contract valid, voidable, unenforceable, void?
Ans: It is likewise VOID.

Ex. You/I entered into a contract para mo loan ka [sa iyaha] for the business
namo/Ninyo nga mamaligya mog/mig shabu. – it is ILLEGAL, so it is VOID.
Then para makabayad ka/ko sa hulam niya para sa shabu, ge pledge nimo
ang imohang sakyanan.
- What happens now, because your principal contract is VOID, the
pledge which is just an accessory is likewise a VOID also. (pwede ni
mahitabo)

NOTE: the pledge it will become valid, void, it depends on the principal contract
or obligation to which is attached. They cannot excess without a valid principal
obligation.
2. The pledgor- (kini ang katong ni promise or katong ni collateral) or mortgagor
should be the ABSOLUTE OWNER of the THING PLEDGED or MORTGAGED.

What happens if dili diay siya ang tag iya?

- Then because dli present ang essential element, kay dli siya ang tag-
iya, the pledgor or mortgage is VOID.

Ex. Nangutang ka og 10M ni Mr. X- (pledgee or mortgagee), then ang e pledge

sa nangutang is ang sakyanan, it turns out nga ang sakyanan is sakyanan sa
iyahang papa, dli sa nangutang ang tag iya sa sakyanan na iyahang gi pledge. The
question is,

Is the pledge VALID?

Ans: No, Because the pledgor, is not the absolute owner of the thing
pledge.

Is there an exemption to that rule, nge bahalag the absolute owner in effect
ma valid gihapon ang mortgage.

- There is doctrine of the mortgagee in good faith.

Ex. (Refer to ex. Number 2 prior) For the utang, ang gi mortgage niya is ang
parcel of land (REAL PROPERTY), ni hatag ang nangutang- (pledgor/mortgagor)
og land title, iyahang gi dawat kay pag lantaw niya nakapangalan sa nangutang
ang yuta. Later on FAKE diay ang land title,

So you learn in GENERAL RULE, nga dili man siya maoy tag-iya, so VOID dapat
ang mortgage, but because MR X. the mortgagee is in GOOD FAITH. Pwede to
siya na ma VALID gihapon ang pagka mortgage

EXCEPTIONS TO THE RULE: What happens in a MORTGAGEE IN GOOD FAITH?

- Under the law, or person is not obliged to go beyond the validity of

the title. (refer ex. Before this)
- (refer ex. Before this), the pledgor ni present og title ni MR. X, a title
is noticed to the whole world nga imoha na nga property, under the
LAWS OF EQUITY or PUBLIC POLICY, si MR. X, dli na siya required na
tokion jud niya nga mao bajud na ang land title or valid ba jud siya,
kay nay PRESUMPTION ana nga VALID to ang land title ni pledgor.
Mao ng PROTECTIVE siya, that’s why it is MORTGAGEE IN GOOD
FAITH.
- As a MORTGAGEE, he believe in good faith that the land title of
pledgor is VALID. Dapat sad na walay any doubt or any hint of
suspicioun sa pledgor na basin fake ang land title. So dapat nig tan
aw mura siyag real or true ang title, pero it turns out lang nga dli.
 - That is the exception to the rule na even if the mortgagor is not the
absolute owner, if the morgagee is a MORTGAGEE IN GOOD FAITH,
then pwede siya na ma VALID ang mortgage.

3. That the persons constituting the pledge or mortgage have the free disposal of
their property, and in the absence therof, that they be legally authorized for the
purpose.
- Dli lang kay enough nga sila ang tag-iya or absolute owner, dapat
naa pud silay he can freely dispose it.

Unsa may instance na bahalag ikaw tag-iya you are not allowed to dispose it?

Ex: nakasuhan ka, napreso ka, you are penalize with civil interdiction-
(is a type of penalty), in addition sa imong pagka preso naa kay civil interdection,
in civil interdiction kuhaan kag certain rights, which you can do unta as an
owner, kwaan kag PARENTAL AUTHORITY- (part of civil interdiction), kuhaon sa
imoha ang right to manage your property, part of your right to manage your
property is the right to freely dispose. So bahala pag sakto ang second requisite,
yes siya ang absolute owner diba pero na preso lang siya.

Can because he does not have the free disposal of the thing because of certain
instances.

Ans: therefore, dli gihapon valid, ang pledge or ang mortgage nga
iyahang gi constitute.

SUMMARY:

In number 1, there must be/ it must secure the fulfillment of a principal

obligation, number 2, the pledgor or the mortgagor, must be the absolute
owner, of the thing pledge, and the number 3, dli ra enough nga siya ang
absolute owner, dapat naa pud siyay free disposal of the property or even
authorized lang siya to do so, legally authorized for the purpose.

Third persons who are not parties to the principal obligation may secure the
latter by pledging or mortgaging their own property.

- Dli diay pasabot nga ang maka pledge og mortgage ra to secure a

principal obligation is a parties which a principal obligation.
- Ex. nangutang ka og 1M ni MR. X, they are the parties of the
principal obligation, and then ang mama sa nangutang ni uban siya
pagpangutang, because wala pay property, ni ana iyahang mama na
cge ang among e pa secure ani is ang sakyanan sa iyahang mama.
- Is the PLEDGE VALID?
Ans: YES, mo reason out na wala may labot ang mama sa
ilahang principal obligation ng age secure so dapat dli na siya,
pero dli man ingon na dli pwede ang third person for as long as
katong third person siya ang absolute owner of the thing pledge
 and naa pud siyay free disposal, remember sa first requisite na
wala man gi-ingon nga ang pledgor or mortgagor is a party of
the principal obligation, dapat lang nay principal obligation. So
3rd person is allowed.

NOTE: if dli siya kabayad ma for close ang property na gi

attached/mabira.

Article 2086:

- The provisions of article 2052 are applicable to a pledge or mortgage.

- In 2052, A guarantee cannot exist without a valid obligation. Applicable daw ang
2052 in a contract of pledge or mortgage. Meaning a pledge or a mortgage cannot
exist without a valid obligation, nevertheless a pledge or a mortgage maybe
constituted to secure the performance of a VOIDABLE or an UNENFORCEABLE
contract,
- It may also secure a natural obligation. Meaning if ang ge secure of principal of
obligation is VOID. What happen to your pledge or mortgage?, its likewise VOID.
- Pwede ba nga VOIDABLE ang e secure sa imohang pledge or mortgage, pwede
because under 2052, pwede daw e constitute for the performance or to secure the
performance of a VOIDABLE or UNENFORCEABLE contract.
- VOIDALBE AND UNENFORCEABLE, they are valid man but naa lay defect gamay. Ang
voidable is valid untel nay ipa anull siya. Ang unenforceable is valid na inyo dili lang
ka maka seek or you cannot ask for the court for help.

REMEMBER: Basta dli lang void ang principal obligation, GOODS ra ang pledge or
mortgage.

Article 2087:

- The essence of this contract pledge and mortgage, (murag unsay gamit niya ba), that
when the principal obligation becomes due ( meaning ning due na, demandable na
siya) katong things nga gi pledge or gi mortgage nimo may be alienated for the
payment of the creditor.
- Ang nanhitabo, If ma due daw atong principal obligation, katong imong gi pledge or
gi mortgage pwede to siya e for close para e subject to for closure sale.

Article 2088:

- This provision is called the PROHIBITION AGAINST PACTUM COMMISSORIUM- (it is

a stipulation wherein automatic na ma appropriate to the creditor ang thing nga gi
pledge or gi mortgage in case dli kabayad ang debtor.

Ex. let say nangutang si MS. A ni MR. B for 1M pesos, gi pledge ni MS. A ang iyahang
sakyanan, naa sad siyay free disposal of the property.

Is the PLEDGE VALID?

 Ans: YES!
Another info, ddto sa ilahang pledge, naay stipulation ddto gi sulat an in case dli
kabayad si MS. A og kining sakyanan will be automatically owned by MR. B (murag
automatic ma apply siya sa utang)

Is the STIPULATION VALID?

Ans: NO, because that is already pactum commissorium. Mao na siyay gi
prohibit sa 2088, the creditor cannot appropriate- (meaning iyahon ba, ma
automatic nga ma iyaha) the things given by way of pledge or mortgage, or dispose
of them. Any stipulation to the contrary is NULL and VOID.

So ang nahitabo ato ang STIPULATION, if dili daw makabayad automatic nga ma
adto na sa iyaha ang sakyanan without any further proceedings.

Kanus a diay sakto nga mahitabo ana?

- EX: naay principal obligation, gi pledge ang sakyanan, of dli

makabayad si pledgor mo go through pana og for closure sale, for
closure proceedings. Dli siya automatic.
- To protect debtors if the pledge is mas dako og value kaysa sa
utang.
- Ex: si X nanginahanglan og cash nga 100,000 pero naa siyay 1
hectare of land, later on ni duol si X ddto ni Y kay manghulam og
100,000 tas gi collateral or gi pledge niya ang iayahang 1 hectare of
land, if sugtan na siya na if dli kabayad si X the debtor, automatic ma
transfer ang ownership ni Y – ITS PRONE TO ABUSE.

ELEMENTS OF PACTUM COMMISSORIUM:

1. That there should be a pledge or mortgage wherein a property is pledged or

mortgaged by way of security for the payment of the principal obligation;
and
2. That there should be a stipulation for an automatic appropriation by the
creditor of the thing pledged or mortgaged in the event of non-payment of
the principal obligation within the stipulated period. Article 2089:

Article 2089:

- The GENERAL RULE on the indivisibility of a pledge or mortgage is that if ge pledge

nimo ang isa ka butang for a principal obligation, dli na pasabot na if bayran ang
tunga pwede napud ma release and tunga nga gi pledge, its INDIVISIBLE.
- Ang entire obligation nga iyahang gi secure mao jud to dapat ang ma satisfy para ma
release.

Ex: Nangutang si A ni B og 3M pesos then ang gi mortgage ni A kay ang iyahang

balay, turns out, namatay si A pero naa siyay tulo- (co-owner) ka anak, (diba if
mamatay ma transfer man ang obligation sa tulo niya ka anak), para dli na mag
 attached tong utang or mawala na ang mortgage sa balay, ang isa niya ka anak naay
1M, ang duha wala. Ang isa nga naay 1M iyahang gi bayad ni B, gi ignan niya si B na
wala nay pledge ang first floor kay nabayran na ang Katunga ang remaing floor sa
iyaha igsuon nay bahala ana.

Is the ANAK correct?

Ans: NO!

NOTE: A pledge or mortgage is INDIVISIBLE. Og unsa iyahng entire principal

obligation kana jud dapat ang ma satisfy before ma release imohanhg pledge or
mortgage.

Ex. (SAME EXAMPLE APPLY) but this time si B ang namatay, naka bayad na si A og
1M sa isa sa mga anak B, ni ana ang anak sa B na e release na niya ang first floor og
si A nay bahala sa uban niyang igsuon og sa remaining floor.

Is that ALLOWED?
Ans: NO! because the INDIVISIBILITY works in both ways. Sa DEBTOR og sa
CREDITOR nga side. Sa DEBTOR na side, dili sila ka request na ma release unless ma
fully paid ang principal obligation. Sa CREDITOR na side, dli sila kapatakag release sa
pledge or sa mortgage unless ang tibuok obligation ang ma satisfy.

EXCEPTION:

- IF gi specify niya,
- Ex: Ang utang ni C is 3M ni D, ana si C na ang 1M sa iyahang sakyanan, sa other
million is sa iyahang fish pond, sa other niya na million is sa iyahang palay. Gi specify
niya which portion of the obligation is guaranteed by which. In this case, What if
nakabyaad si C og 1M lang sa and C asking D na pwede naba ma release ang car.

Is that Allowed?
Ans: YES,
Pero does that violate the INDIVISIBILITY?
Ans: NO

Article 2090:

- Bahalag joint debtor sila

- Ex: Tulo sila debtor, tulo sila nangutang ni W og 3M, they are JOINT DEBTOR-
(meaning you are not solidarily/ to each is owned ang sa joint), ang ilahang gi
collateral is for the entire obligation is the car, so bahala daw dli sila solidarily
debtor, joint debtor sila, before ma release ang mortgage sa car dapat ma fully
satisfied sa ilahang utan.
The INDIVISIBILITY of a pledge or a mortgage, dli siya affected by the fact nga joint
debtors ang mga …
Article 2091:

- The contract of pledge or mortgage may secure all kinds of obligations, be they
pure or subject to a suspensive or resolutory condition.
- The contract of pledge or mortgage may secure all kinds of obligations at all times.
(TRUE)
- What type of obligation ang dili ma secured og pledge or mortgage? (VIOD)
- What type of obligation ang pwede mo pledge or mortgage? (VALID)
- What type of principal obligations nga void pud imohang pledge or mortgage?
(VOID)

Article 2092:

- Ni ROMISE lang ka, dli mana mao jud ang pledge or ang mortgage, ni promise ka na
mo pledge or mo mortgage ka.
- Ex: Si E ni utang ni F og 3M, ni promise si E na e pledge niya ang sakyanan, ni tando
si F, ni hatag sad si F pero wala pajud na formalize ang pledge, kay ni promise paman
si E, now si E wala niya gi dayun og pledge or mortgage ang sakayanan.

What is his action now? (F)

Ans: what he can do is sa 2092, naa siyay personal action against to E. so the
personal action ni F kay E is, si F pwede maka demand the fulfillment of the promise
of E to constitute the pledge or the mortgage.

In addition, pajud na siya sa possible na criminal liability ni E, for STAFA- (ilad, ang gi
punished sa STAFA is ilad, pagpangilad)

(Example for STAFA: if katong promise ni E na naa siyay e pledge, mao toy
hinongdan na nihatag siya or nisugot siya mag pa utang, then wala diay buhata ang
promise ni E) – THAT IS ILAD

PERSONAL ACTION – it is an action to that specific person.

NOTE: IF you made a promise to constitute a pledge or a mortgage and then wala
nimo tumana,

WHAT ARE THE POSSIBLE REMEDIES?

1ST PERSONAL CIVIL ACTION FOR THE FULFILLMENT OF THE PROMISE
2ND PWEDE SIYA MA CRIMINALLY LIABLE FOR MISREPRESENTATION-
(mangilad siya nga naa daw siyay e pledge or ang iyahang e pledge is siyay tag-iya)
 “Pledge”
Article 2093:

- In 2093, naay additional requisites nga isa para ma valid ang contract of pledge.
- 3rd requisites, You have to place the thing pledge in the possession of the creditor or
of a third person by common agreement.
- Pasabot ana ang PLEDGE diay is a REAL CONTRACT.
- REAL CONTRACT is perfected by delivery.
- In 2093, dapat ebutang ang thing na ge pledge nimo either ddto sa creditor or mag
sabot si creditor og si debtor ddto ni Mr. X- (3 rd person) nato e ubtang ang thing na
ge pledge.
- Ex: Si Y naay utang ni Z og 1M, gi pledge niya ang only car. Is that enough nga kato
lang , naa silay sabot na e pledge ni Y ang sakyanan, then the next day iya pang gi
gamit.

Was the PLEDGE perfected?

Ans: NO, even if present tanan requisites sa 2085, but by virtue of 2093, you
have to put the thing pledge in the possession of the creditor. So dapat I hatud ni Y
ang sakyanan ni Z the creditor or if ga sabot sila kung asa nila e pabutang let say sa
the other na person, so pwede ra gihapon.

Article 2094:

- This is unsay pwede nimo ma subject sa CONTRACT OF PLEDGE.

- A pledge here is only applicable to MOVABLE. Ex. CAR, RING, WATCH
- Dapat also within the commerce. [can you pledge illegal drugs? – NO]

Article 2095:

- When we say INCORPOREAL RIGHTS, dli makita, intangibles. But they are
properties.
- Common example, SHARE OF STOCK, are property that we cannot see them.

How can you pledge them?

Ans: You can pledge them by pwede siya CONSTRUCTIVE DELIVERY, unsa may e
hatag nimo ddto kang creditor? Ang STOCK CERTIFICATE. The delivery of the
certificate of stock is enough to constitute delivery to perfect the contract of pledge.

- Ang rule diay, if ang thing /object of a pledged is capable of manual delivery, then
you have to deliver it. But if dili siya capable of manual delivery, then
CONSTRUCTIVE DELIVERY.
Article 2096:

- Will teach you unsaon siya para ma binding to 3 rd person, meaning notice sa laing
mga tawo na, na pledge na siya.

- If dili nimo epa butang sa public instrument, is the pledge valid?

Ans: It is valid between the parties, but it is not binding to 3 rd persons. You
cannot directly say na its VOID, because its not an essential requisite of a
contract of pledge. Gi state lang sa 2096 na it will not take effect against 3 rd
person if the description of the thing pledge, date of a pledge will not appear in
a PUBLIC INSTRUMENT, but it did not say that the pledge is void or the pledge is
not binding between the parties.

NOTE: For the pledge to take affect against 3 rd person, it should be in a PUBLIC
INSTRUMENT, the contract of pledge and then it must contain the description of the
thing pledge and the date of the pledge.

Article 2097:

- Diba sa pledge, nag ingon ta na dapat e deliver.

Ex. Si W naay utang ni X, gi pledge ang sakyanan ni W, gi deliver dayun ni W ang

sakyanan ddto kang X – That is the GENERAL RULE, PERFECT THE CONTRACT OF
PLEDGE.

Can W sell the car?

Ans: Diba si W gihapon ang owner, gi pledge lang niya ang sakyanan, so W can
sell the car with the CONSENT of the PLEDGEE. So para ma alienate daw sa tag-iya,
mananghid siya ddto kang pledgee (X).

Kanus a man mo transfer ang ownership na dayun?

Ans: IF mosugot si X, then ma consummate dayun tong pag pabilgya, then there
is transfer of ownership already.

But again, Pwede ba kuhaon sa buyer ddto ni X ang sakyanan?

Ans: NO, because of the possession will remain with the CREDITOR or PLEDGEE.

If mananghid pwede ni e alienate.

But can W repledge the thing pledge?

Nangutang si W ni X og 3M, gi pledge ni W ang sakyanan, but this time
nangutang napud si Y, gi pledge nasad ni W ang same car na gi pledge sad ddto kang X.

Is that allowed?
 Ans: W is still the owner, kay gi pledge raman ni W, but the answer is you
cannot REPLEDGE it, remember that in pledge delivery or putting the thing pledge in
the possession of the pledgee is a requirement para ma VALID.
So if gi pledge ni W kang X, of course gi deliver sad ni W, perfect.

But can W pledge it again another one?

Ans: NO, because dli naman nimo ma deliver sa iyaha. So that is the reason why
you cannot repledge the thing pledge.

NOTE: pwede niya ma alienate but you cannot repledge it or e pledge napud nimo o
balik.

PLEDGOR PLEDGEE MORTGAGOR MORTGAGEE

A person who Pledgee and
pledges thing/ Creditor are the
object to the same.
creditor. The one benefits
to the pledge of
pledgor.

Article 2098:

- It can retain the possession.

- GENERAL RULE, if ma PLEDGE na ang butang, the pledgee/creditor has the right to
retain it, dli niya e uli hangtud mabyaran ang utang.

Article 2099:

- This is the obligation on the part of the creditor.

- Diba sa iyaha na, he has the position of the thing pledge, dli kay tungod naa niya
utangan ko, then naa niya ang sakyanan, pwede na dayun niya pasagdan lang.
- The creditor shall take care of the thing pledge with the diligence of a good father of
a family.
- He has the obligations to take care with ordinary diligence. (iyaha pud ampingan)
- He has a right also to reimbursement for the expenses made for its preservation,
and is liable for its loss or deterioration, in conformity with provisions of this code.
- You must remember nga ang right to reimbursement for expenses must refer to
expense for the preservation.

Ex. Si Q gi pledge niya ang sakyanan kang A, tas naa sa A or sa iya ang sakyanan,
negasto siya og let say mugs nga mag siga2 or iyahang gi pang butangan og
accessories, unya karun mag settle na sila sa utang, nakabayad na si Q sa iyahang
 utang but naningil paman jud si A showing the right of the reimbursement of the
expenses nga iyahang na gasto.

Can the Creditor/Pledgee demand for the reimbursement in that case?

Ans: No, because the expenses were not for the preservations of the thing.

NOTE: So, if ang expenses niya is gigamit para mudagan pa ang sakyanan, gi pa
change oil para dli ma guba so that means, this is REIMBURSABLE. Pero if it is not
for the preservation, then it is not subject to reimbursement. Also, if the thing will
be damage because sa iyahang negligence or iyahang wilful acts, the
pledgee/creditor is also liable. Of course, because in the first place he is not the
owner.

Pwede ra nga if magsabot sila nga willingly mo bayad si pledgor sa mga unesessary
expenses kay naganahan or pwede rasad na mabawi ang unessessary expenses ni
pledgee base sa ilahang sabot but the main thoughts here is that dili ka pwede maka
DEMAND- (dili pwede e pamugos) sa reimbursement.

Article 2102:

- Ex. Ang gi pledge ni Z kang A kay ang shares, unya karun there are no dividends,

Who shall be intitle daw to the dividends?

Ans: So under 2102, si creditor if makadawat siya og dividends or fruits from the
thing pledge What is he going to do? Ans: He will compensate what he received
with those which are owing him.

Ex. Ang utang ni Z is naa siyay interest, katong na earned nga fruit sa thing na gi
pledge, ma punta to siya sa creditor pero e hapak to siya sa interest. Mao nay e
compensate ba. Ang utang ni Z is naay interest, ang gi pledge ni Z is nag earned pud
og income, ang katong income nga na earned sa thing na gi pledge dapat e hapak to
ni creditor sa interest.

If

Ex. ang fruit is mo 500,00 unya ang interest is let say 20,000 ra, naay 30,000.

Asa man siya mapadulong?

Ans: Pwede niya ddto ihapak sa principal amount ni Z

- In case of pledge of animals, their offspring shall pertain to the pledgor or owner of
animals’ pledge, but shall be subjected to the pledge, if there is no stipulation to the
contrary.
 Ex. What if imohang gi pledge is ang BAKA, tas nanganak ang BAKA, diba as a rule
you learned nga ang katong FRUIT e hapak to siya sa interest una, if naay subra ddto
sa principal amount, pero what if offspring diay sa animal na gi pledge.

Kinsa may tag iya atong sa anak (nate) sa baka?

Ans: ang PLEDGOR, mura siyag in a way exception, ddto sa pledgor na ang
ownership. Pero the offspring shall be subject to the PLEDGE.

Pwede ba niya e hatud ang nate?

Ans: NO, kay mo extend man ang pledge ddto sa offspring. Ang tag-iya is ang
DEBTOR/PLEDGOR, pero dili to siya ingon nga pwede e hatud ddto kay ang nate as a
general rule is part of the PLEDGE, mo extend ang pledge ddto sa offspring, so dapat
ddto gihapon ang position.

Article 2103:

- Ex. What if gi kawat ang thing pledge, pwede ba nga si creditor ang mo kiha ddto so
pwede diba,
- the creditor, he can bring the action nga unta ddto ra sa tag-iya, pero because he
has an interest of the thing , he can also bring the action to recover the thing pledge
against 3rd person

Can the Creditor use the thing Pledge?

Pwede ba niya drive drivan?
Can he do that?
Ans: In 2104, the creditor diay cannot used the thing pledge without the
authority of the owner.

Other possible situation:

- Nananghid tas mi sugot – acceptable
- Wala nananghid - unacceptable
- Nananghid pero wala mi sugot pero gi gamit jud – unacceptable
- Misuse (gi sugtan nimo pero lahi ang gi pananghid sa iyahang paggamit)

What can the owner do? [EXCEPTION TO THE RULE]

Ans: the owner can ask that the thing, judicially or extrajudicially deposit, imong
epa deposit ddto sa court or with some other person.

EXCEPTION TO THE RULE:

1. If the creditor or pledgee will use without authority or will misuse the thing
pledge. But what if ang paggamit sa thing para ang purpose is ma preserve
siya
 Unsa mana nga mga butang nga dapat gamiton aron ma preserve, diba ang
sakyanan dapat ipadagan dagan aron ma preserve siya.

Can the Creditor use that Now even without the authority?
Ans: YES, but only for that SERVICE – (not sure) or para ma preserve
lang ang butang.

Article 2105:

- Is also the GENERAL RULE, si DEBTOR daw dli niya pwede pangayuon or bawion ang
thing pledge against the well of the CREDITOR, unless and until nakabayad siya sa
iyang utang, sa interest og sa expenses with a proper case.

When is expenses reimbursable sa part of creditor?

Ans: if needed siya for preservations.

NOTE: if naka incur si pledgee og expenses for the preservation, then ang interest sa
imong utang plus ang imong principal, mao na dapat ang tulo na ma bayran para ma
uli ang thing na gi pledge.

Article 2106:

- EXCEPTION
- If through the negligence or wilful act of the pledgee, the thing pledged is in danger
of being lost or impaired, the pledgor may require that it be deposited with a third
person.
- So, if sa ka tanga, or sa tinuyuan ni pledgee/creditor, ang thing nga gi pledge daw is
in danger of being lose or impaired.

Ex. Ang singsing tungod sa iyahang ka tanga, kay iya rang gi bilin2 bisan asa, hapit
Nawala, diba the GENERAL RULE is dli pwede bawion sa pledgor if dili siya kabayad.
1st exception there, is if tungod sa ka tanga, or sa wilful act ni pledgee, the thing
pledge is naa siya sa danger of being lose or impaired pwede niya kuhaon sa creditor
but e deposit sa 3rd person.

NOTE: There is negligence or willful act of the pledgee, meaning at fault ang
pledgee. In 2106, dli siya required nga bayloan niya og lain, pwede niya kuhaon ddto
ni creditor pero e deposit siya sa 3rd person.

Article 2107:
 - There is a reasonable grounds of fear nga ma guba, pero without the fault of the
pledgee, of course ang pledgor may tag-iya sa thing, tas mahadlok siya, tan-aw niya
na ang balay ni pledgee / creditor, daplin og suba, unya ga cge og kabaha pajud, so
diba there is reasonable ground to fear nga ma impaired or maguba ang thing
pledge without the fault of the pledgee.

Can the creditor pwede ba niya kuhaon ang thing pledge?

Ans: the rule is YES pwede niya kuhaon, pero mo offer siya og another thing nga
of the same kind as the former and not of inferior quality.

NOTE: In 2107, in this case, without the fault of the pledgee, pwede kuhaon ni
pledgor pero iyahang bayloan og lain.

Article 2108:

- What if imuhang gi pledge is UTANON, ang harvest sa inyuhang hashenda mga

sibuyas.

Can you PLEDGE that?

Ans: YES, it’s movable as long as he is the owner.

Ex. Nag hatud si Z og lima ka bukag nga talong ddto ni A, mao ni ang pledge ni Z sa
iyahang utang kang A, di paman jud sure kung kanus-a makabayad si Z, ang talong
from green nahimong violet tas nagka brown na. Ana dayun si A na murag di nani
maayo.

What can A do?

Ans: In 2018, wala siyay fault ato kay from the nature of the thing pledge,
PERISHABLE siya, so there is a danger of the destruction, impairment, or diminution
in value, so si A in that case or the PLEDGEE can cause the sale or the thing pledge to
be sold at a PUBLIC SALE. So iyaha natong e pa baligya in a PUBLIC SALE. So, if
mahalin na dayun na siya sa PUBLIC SALE

Does it mean wala nay ge PLEDGE?

Ans: Naa gihapon, ang katong halin mao to siyay mo stand or substitute of the
talong, so katong halin mao to siya ang ma pledge.

NOTE: Without the fault

Ex. What if nakasala si PLEDGEE mao nang ni ubos ang value sa thing pledge.

Pwede ba niya e baligya?

Ans: NO, again if at fault siya you go to article 2106
Article 2109:

- Nailad si creditor/ pledgee sa thing nga gi pledge.

Ex. Nangutang si C kang D og 100,000, ni ingon si D na unsa may akong assurance

nga naa kay ikabayad. Dayun ni ingon si C nga naa koy kabayo. Gi dawat ni D ang
kanang ipa pledge ni C og gi hatud ni C ang thing pledge, pero ang kabayo diay to
tulo ra ang tiil, ana dayun si D nga ingon si C nga daghan nag nadag-an.

So in this case, na deceive si creditor/ pledgee sa the thing pledge, what is the
remedy now for the creditor/ pledgee?
Ans: Either pabayloan niya og lain or pabayron nalang ang tibuok utang ni C, dli
nalang ta atong kabayo2x.

NOTE: So those are the exception to the rule nga, the pledgor, the GENERAL RULE
again is the PLEDGOR cannot ask for the return of the thing pledge, unless
mabayran niya tanan ang utang, interest, expenses.

NOTE: the Article 2106, 2107, 2108, 2109, are in a way EXCEPTION to that rule, kay
diba this are instances kanus pwede kwaon, from the creditor either kwaon niya e
ihatag, e deposit sa lain- (2106), kwaon niya pero bayloan niya og lain- (2107),
kwaon niya e baligya ang proceeds maoy mo stand- (2108) or 2109 ilisdan og lain
kay na deceive siya or mo demand lang immediate thing. In 2109 this is for the
benefit of the creditor.

Article 2110

- The rule daw diba, ang thing pledge dapat naa ni creditor.

What if gi uli?
Gi uli ni V- (pledgee) ang thing pledge- (sakyanan) ddto kang N- (owner/pledgor)

Ex. What is now the effect? What happens to the pledge?

Ans: The pledge is EXTINGUISHED.

Ex. What if nagsabot sila, ana si N na sge akong e pledge ang sakyanan pero pwede
rana nimo e uli sa akoa pero dili pa gihapon ma impas ang utang or Pwede e uli ni
PLEDGEE ang utang pero dli pa ma empas ang utang, or gi pledge, kay basin yata dli
siya ganahan nga siya ang mo atiman/dala.

Is that stipulation allowed?

Ans: So, in 2110, any stipulation to the contrary shall be VOID.

NOTE: Again, the STIPULATION only, kato rang sabot nila nga bahalag iyahang e uli,
dli extinguished ang PLEDGE, kato ra ang VOID, but the PLEDGE itself is valid with all
 the requisites are there. Since, naa man siyay obligation to take care the thing
pledge mao yata mahadlok ang pledgee mod ala or mo atiman.

What is the effect now?

Your stipulation is VOID.
What if gi uli niya kang PLEDGOR, tas nag sabot sila nga bahalag iyahang e uli
GOODS gihapon ang pledge.

Is the PLEDGE goods gihapon or EXTINGUISHED?

Ans: EXTINGUISHED na, because ang ilahang sabot is VOID, it is as if wala mo
nag sabot.

What is the RULE?

If e uli niya ang thing pledge, the PLEDGE is EXTINGUISHED.
Ex. What if after the perpection sa pledge, na pledge ni A ang sakyanan ddto kang B,
pag ka ugma na abot sa A ang sakyanan sa garahe. Ana dayun si B nga naa lageh na
nimo ang sakyanan. Subsequent to the perfection of the pledge, the thing now is in
my position valid, kwets nata wala natong pledge

Is the Extinguishement there or the effect of the extinguishment conclusive

Ans: Dli, it’s just prima facie.

What does it mean [PRIMA FACIE]

- If mag kiha-ay sila, ang tan aw sa balaod as is lang is gi uli to ni B ddto kang
A, that is the presumption, iyahang gi uli but again that’s PRIMA FACIE that’s
not CONCLUSIVE.
- So pwede gihapon siya naa niya na ang BURDEN to prove na wala to niya gi
uli.
- As if lang man na na abot sa kang A ang sakyanan so it is as if na gi uli niya,
so it is as if extinguished na ilahang pledge. But again, that’s PRIMA FACIE
only. He has the right nor he has even the burden to question that na siya
na dayun mo prove na wala niya gi uli but na kawat lang or in some other
circumstances.
- If wala siyay action or buhaton ato, pwede na ang tan-aw sa balaod, gi uli to
niya.

Article 2111:

- This is another mode of extinguishing the pledge.

- In a statement in writing, the pledgee renounces or abandons the pledge is
sufficient.
- What do you mean by renounces or abandons, meaning imoha ng gi LET GO. Gi
forgive, wala nay PLEDGE.
 - [I am renouncing my right to the pledge, or I am renouncing the pledge.]- statement
in writing.

Kanus a man na extinguished ang pledge? Pag renounce, pag-uli?

Ans: Pag renounce, diba in 2111 if ang mode of extinguishing the pledge is by
statement in writing, renouncing, or abandoning the pledge, dli na necessary nga e
accept sa pledgor gani or e return ang thing pledge para ma extinguished.

Article 2112:

- So, what if daw si creditor, ni due na ang utang sa principal obligation, wala kabayad
si debtor.

Unsa nay pwede nimo buhaton?

Ans: Again, you can proceed to the for-closure sale lang kumbaga.

How is this done?

Ans: you go to a notary public- (is a lawyer who has notarial commission)

Ex. Atty. Amo naming e pa PUBLIC SALE kay wala siya kabayad sa iyahang utang, so
the sale shall be made at a PUBLIC AUCTION.

Do you have to notify the owner or the debtor?

Ans: YES, it must be notified the DEBTOR and the owner, NGANONG AND
MANA? Kay diba pwede man nga ang owner sa thing pledge is not the DEBTOR,
pwede siya diba 3rd person.

NOTE: So dapat si DEBTOR og si OWNER of the thing pledge , ang imong e notified
nga kini mag public auction na, e baligya na namo ang imohang gi pledge. Sa FIRST
AUCTION, if mabaligya, maayo.

What if wala?
Ans: Mag SECOND AUCTION

Unya wala gihapon? Kay wala juy mop alit, what will happen now?
Ans: In this case, the creditor, can now appropriate the thing pledge. Pwede na
ddto na iyahon nato ang thing nga ge pledge. Then he will be obliged lang to give
acquittance, meaning ok nato iyahang obligations tanan, interest, expenses.

Article 2113:

- At the public auction, so gibaligya najud kay wana kabayad, the pledgor or the
owner may bid.
- Si pledgor daw or the owner of the thing pledge, pwede siya mo bid diba, pwede
siya mo bid sa iyahang public auction,
- If duha sila, pariha sila og gi bid.
 Kinsa man ang awardan?
Ans: Siya, naa siya og preference, he has a better right. So si pledgor pwede mo
bid. Kay ang prohibition is that sa iyaha raman (PLEDGOR)

Si pledgee, pwede ba siya mo bid?

Ans: YES, pero if siya rajud ang bidder, dli jud siya pwede. Kay it’s SELF SERVING
man.

Ex. sa SELF SERVING

Siya moy creditor, pag public sale, silang duha ang maoy naa ddto, Si
CREDITOR/PLEDGEE, daghan kaayog alahas, ang utang ni PLEDGOR kang PLEDGEE
let say 500,000, ang thing na gi pledge is let say motorcycle,

So, what if dli mo bid si pledgor but si pledgee ra, Mo ana si pledgee na iyahang e
bid ana is let say 50,000.

Is the bid VALID?

Ans: NO, why because again in 2113, dli siya pwede nga siya ra ang mo bid
bidder ddto. It must be duha sila “on the part of the pledgee.”

Article 2114:

- So, kung mahalin ang thing pledge, so ang offer ana to bid is kas-ahon og bayad.

Ex. Ang winning bid is 500,000, dapat kas-ahon nag bayad, mao jud nay rule ana.

Ex. What if ni dawat si kuan na 2gives lang ang pagbayad, ni sugot si creditor, so un
ana bayad si 250,000, pwede ba siya maka ingon na dli pato impas ang pledge kay
ang 250,000 wala pako kadawat

Can they do that?

Ans: DLI NA, kay diba if the bid is not for the entire purchase price at once, the
pledgee is still deemed to have receive it as far as the pledgor is concern.

Article 2115:

- Mao nani siya ang nakapait/naka nindot sa pledge

- This is one of the differences, between PLEDGE and SHATTLE MORTGAGE.
- Diba there is a MORTGAGE involving MOVABLE PROPERTIES also that’s shuttle
mortgage.
- Sa pledge if inig baligya, og unsay halin mao najud to siya. If ang halin kulang siya to
satisfy the utang
 Pwede paba na maningil si creditor na ui kulang? But what if nag sabot sila, can
the creditor entitle to recover of that deficient/ deficit?
Ans: NO, dili gihapon, notwithstanding any stipulation to the contrary.

NOTE: If kulang or subra, the rule there is og unsay halin mao najud na siya. FIRST
SCENARIO, what if kulang, bali kulang ang halin sa utang, nahalin ang gi pledge nimo
og 800,000, unya ang utang total tanan is 1M. CAN THE CREDITOR GO TO THE
DEBTOR AND IGNON NGA KULANG KAG 200,000 or CAN THE CREDITOR DEMAND?
WHAT IF NAGSABOT SILA? Ans: dli gihapon, notwithstanding any stipulation to the
contrary, if the price of the sale is less, the creditor is not anymore entitled to
recover the deficiency. SECOND SCENARIO, what if subra, ang utang is 800,000 tas
nahalin og 1M, CAN THE DEBTOR GO TO THE CREDITOR AND IGNON NGA SUBRA
NA OG 200,000 AMBI NA ANG 200,000? Ans: the rule there is dli, the debtor is not
entitled to the excess. WHAT IF NAA SILAY SABOT IN CASE SUBRA MA ADTO SA
DEBTOR, IS THAT ALLOWED? Ans: YES, pwede na dayun.

Article 2116:

- After the public auction, the pledgee shall promptly advise the pledgor or owner of
the result thereof. [read only]

Article 2117:

- Any third person who has any right in or to the thing pledge may satisfy the principal
obligation as soon as the latter becomes due and demandable. [read only]
- Any third person who has any right in or to the thing pledge, pwede pud na siya ang
mo bayad sa principal obligation para makabuhi ka ang thing pledge. [in case of Co-
owner]

Article2118:

- What is the difference between 2118 and 2115?

- In 2115, diba gi ingon ddto na incase naay subra, dli na siya generally rule e
uli sa debtor. But nganong sa 2118, if naay subra e uli mandaw.
- In 2118, ang gi pledge dri is credit,
- What are the credits that you can pledge?
- RECEIVABLES, if naa kay dawatonon ani nga tawo pwede na nimo e
pledge.

What if naka collect si CREDITOR atong ni bayad to imuhang gi

utangan , bali naka collect siya from the receivable.

The rule there is, e apply sa niya ddto sa utang, or the interest and
all. Ang subra e uli niya sa DEBTOR.

NOTE: In 2118, wala pay sale nahitabo, kay ang gi pledge ani is the
CREDIT ITSELF. In 2115 nag baligyaay na sila kay wala lang kabayad.
 Mao ng sa 2118, pwede pato nga dapat niya actually nga e uli niya
ang subra kay dli biya to iyaha. In 2115, wala naman kabayad so nag
baligyaay na mao to as a general rule, ang excess pwede na nga dli
na e hatag ni debtor.

Article 2119:

- If more than one thing iyahang pledge, pwede siya mo pili nga kini lang sa ang e
baligya.
- PWEDE siya mo PILI.
- Ang PLEDGEE has the right to choose.

Article 2121:

- This are LEGAL PLEDGES or PLEDGES CREATED BY OPERATION OF LAW.

- Examples there is 546, 1731, 1994.
- What is the difference if LEGAL ang PLEDGE as to CONVENTIONAL, meaning gi
sabutan nga PLEDGE.
- In LEGAL PLEDGES, after payment of the debt and expenses, the
remainder of the price of the sale shall be delivered to the obligor.
- That is an exception to 2115, diba in 2115 if naay subra dli as a rule
e uli sa debtor pero exemption is 2121, if LEGAL ang PLEDGE or if
the PLEDGE is created by operation of law. E uli nimo ang remaining.

Article 2122:

- [read only]

“mortgage”
Article 2124:

- Ang mortgage pwede siya duha, REAL MOTGAGE is ang Immovables and SHUTTLE.
- Ang real mortgage mao na sa 2124,
- Unsay object nga pwede sa contract of a real mortgage:
- Immovables.
- Aleinable real rights – rights nga connected to the immovable dapat
- If movable pwede nimo siya e subject to a shuttle mortgage/pledge. Duha ang
choices sa movable.

Article 2125:

- In addition to 2085, naay another requirements sa real mortgage.

- What is that or What do you have to do?
- Dapat ang mortgage must appear in a document and then it must be
recorded in the registrar of property.

What if the Instrument is not recorded?

Ans: It still binding between the parties.
 NOTE: Again, dli siya essential to the validity between the parties nga e
record nimo ang instrument of real estate mortgage. Real estate mortgage
it must be recorded to be binding sa 3 rd person.

Article 2126:

- What if mangutang ka pero naa kay apartment, so basically iyahang gipa abangan,
dli siya ang possessor kay gipa abangan gud niya, iyahang gipa mortgage ang
apartment

Kinahanglan ba na mananghid sa possessor? Or automatic ba nga pag enter niya

tas gi register sad niya, ma subject na ang property?
Ans: So, it is direct and immediate whoever the possessor may be. For as long as
you are the owner.

Article 2127:

- The mortgage will extend to the natural accessions or to the improvements, growing
fruits. Cover to sa mortgage.

Ex. Ang imohang yuta naay growing fruits, ang katong growing fuits nga wala pa na
harvest, it’s part of the mortgage.

What if ang property, Ex. Balay imohang gi mortgage, the balay is insured/ gipa
insured niya ang balay, unya kay nasunog, so kung naka comply ka sa tanan
requirements sa insurer, makakuha ka og insurance.

Gi mortgage niya ang balay, nasunog pero naka claim siya sa insurer, ang katong na
claim niya ddto nato mo extend iyahang mortgage. Kay diba the amount if
indemnity granted to the proprietor from the insurers of the property mortgage.

Ex. What if ang iyahang gi mortgage is ang iyahang yuta diha sa lam-an, pero gi
expropriate, gi kuha sa gobyerno, pero gi bayran siya og or of just compensation.

Wala naba ang mortgage? Kay gi kuha naman gi tauran naman og village of hope.
Maka ingon bata nga wala na ang mortgage?
Ans: Dli gihapon, katong gi kuha nimo na compensation, ddto na mo extend ang
mortgage.
 What will happen now?

Additional Information in CHATTEL:

- REAL ESTATE MORTGAGE, if ang debt daw nga gi secure atong mortgage, dli ma
bayran, si mortgagee/ creditor duha iyahang pwede buhaton.
- Either,
1. If for close niya ang mortgage or
2. File an ordinary action to collect the debt.

NOTE: That these remedies are alternative and not cumulative. Meaning isa ra
imohang pwede pillion.

Ex. Naay utang si C kang D for 1M, iyahang gi pa mortgage ang iyang piece of
land, karun ni due na iyahang utang wala siya kabayad (pertaining to C).

What can D do?

Ans: D can choose either e for close niya ang katong gi mortgage nga
yuta ni C or mo file siya og ordinary action to collect the debt. If iyaha pillion ang
e for close, meaning mabaligya to sa for-closure sale, diba e baligya to ang gi
mortgage ni C na yuta then ang proceeds maoy e hapak ddto sa utang/ iyahang
utang. Or pwede siya nga mo adto siya sa court mo file siy og case for collection
of sum of money, meaning katong utang ang iyahang e collect.

NOTE: If ni pili na siya sa isa, dli na siya kapili sa other one.

NOTE: if the mortgagee/ creditor will choose to for close the mortgage, the
proceeds of the sale will be applied to the satisfaction of the debt. Diba if e for
close nimo, e baligya nana siya og PUBLIC SALE, og pilay halin sa public sale, mo
toy e hapak sa utang.

In case of deficiency, (meaning kulang ang halin sa PUBLIC SALE sa utang)

- The mortgagee/ creditor has the right to claim for the deficiency
resulting from the price obtain in the sale.
- But in REAL MORTGAGE in case of for closure, if kulang gani ang
proceeds sa sale, the mortgagee/ creditor has the right to claim for
the deficiency.

Ex. What if subra

Ans: Dapat e uli pud niya.

Ex. What if wala niya gi pili e for close, meaning ni result siya into
ordinary action.
Ans: So, they will go to court, dayun mag civil case na dayun na
sila for sum of money.
Is there an instances na pwede ang duha?

Ans: there is actually an instance,

Ex. You choose to for close it first, pero ang halin sa for closure is kulang, then
you can file an ordinary action for the deficiency. Kay what if dli jud siya mo
bayad maskin sa katong deficiency nalang, so you can file an ordinary case for
collection sa deficiency.

REAL STATE MORTGAGE:

If for Ex. Nahalin na ang yuta sa for-closure sale, for close,

Diba iyahang yuta, kay di man siya ka bayad sa akoa, nahalin ni Y ang yuta, siya
may nakapalit sa yuta, so siya ang nakapalit sa FOR PUBLIC AUCTION.

Naa pabay chance na makuha to og balik or katong nag mortgage nga makuha
paba to balik ang yuta?

Ans: Another difference sa mortgage og pledge is the redemption-

(exercise of the right of redemption), meaning you can redeem the property, so
the redemption period is 1 year from the date of the registration of the
certificate of sale, dli siya 1 year from the date of the sale ha, again this is very
important, so meaning from the date, na register ang certificate of sale ddto ni
Y, the Mortgagor have 1 year to redeem the property.

Unsaon pag redeem?

Ans: You have to wait, there is a formula it will take, kung pila iyahang
nabayad, plus naa panay interest.

Ex. So what if diay naka daog tong owner og lotto within 6months or nakabana
og sugar daddy or what if diay naka generats ko og money enough to redeem the
property, so, I can still redeem it.

Another, when can you say that the Owner of the piece of land is already
transferred to the buyer sa PUBLIC AUCTION/ FOR CLOSURE SALE.

Ans: Choices, first from the date of the for-closure sale or from the
date of the registration of the certificate of sale or from the date of the
expiration of the redemption period?
 - From the date of the expiration of redemption period

- The reason why from the date of the expiration of the redemption
period, kay pwede man ma questions, nga "ngano imo naman gi balhin sa imong
ngalan , nga inkowet paman imong right, meaning naa kay right pero wala pa
siya ni hinug jud ba" kay ang under sa balaod naa rakay right of ownership ana, if
ma expired natong 1year " so nganong ga una2 manka, maka question manka
ana.

- So, for 1-year ra, mura rakag infloating status.

NOTE: Again, ma transfer ra ang ownership upon the expiration of the

redemption period.

CHATTEL MORTGAGE:

Article 2140:

- So, another mode of para ma secure nimo ang obligation using a MOVABLE, that is
to be shuttle mortgage,
- So, under article 2140, here the registration is essential to the validity of the chattel
mortgage, meaning that's an additional requirement sa 2058, In 2058, ang common
nilang tanan, plus if shuttle mortgage diay it should be registered.

Where?

Ans: In the shuttle mortgage registration

NOTE: Registration is essential to the validity of the shuttle mortgage,

Is registration essential to the validity of a pledge?

Ans: NO,

Then what is essential man?

Ans: In additional to 2085, what yu have to look? You continue ……

But if dli niya e registered, tas iyahang gi delivered, that is a CONTRACT OF

PLEDGE.
NOTE: As long it is registered, no need to deliver

In both pledge and chattel mortgage, diba the subject matter is a movable
property. In pledge however it is necessary that the thing pledge be delivered
either to the credit or 3rd person by common agreement. Otherwise, there is no
contract of pledge. So, delivery in pledge is essential. In shuttle mortgage the
subject matter of the contract need not be delivered, the registration of the
personal property in the chattel mortgage registry is essential to the validity of
the contract .

What are the other differences when we talked about chattel mortgage?

Ans: In case of deficiency, after for closure, again can you recover deficiency
in case of pledge? Ans: NO, but there is recovery of deficiency in CHATTEL
MORTGAGE

So, both in REAL and SHUTTLE MORTGAGE, you can recover the deficiency.

DEFICIENCY- Kanang pagbaligya or pag for close is kulang , para e bayad sa utang

Is there a right of redemption sa chattel mortgage?

Ans: WALA, pariha rana sila sa pledge, there is no right of redemption.

In cases, the supreme court ruled that, if the subject of the security, meaning is
movable, meaning either pledge or chattel mortgage, there is actually no right of
redemption.

Sence, there is no Right to redeem the personal property, the rights of ownership
vested unto the purchaser at the for closure sale are not intangle to any
suspensive condition that it is implicit in the redemption period, meaning inig
baligya ana sa for closure sale basta movable ang property involved mao nato
siya, ma transferna ang ownership, dli na siya ingon nga naa pa siyay 1yr na
redemption period.

So, diba if there is no issue if real porpoerty, kay isa raman jud, real estate
mortgage ra, dri naka sa personal property, of course ang creditor ana, if ikaw
ang creditor

Unsa man nga type of contract ang imong ganahan na mahitabo, PLEDGE or
CHATTEL MORTGAGE?

Ans: CHATTEL, diba kay naa may rights [it’s a case-to-case bases]
.