Credit Transactions Final Examination Judge A. Serrano (2nd sem 2008) 1. H and o!tained a loan "rom # "or 2$000$000.

T%e& mortgaged t%eir con'ugal (ro(ert&. T%e deed o" )E* contains t%at suc% mortgage is lia!le to an& ne+ and su!se,uent lia!ilit&. it%out t%e -no+ledge o" $ H as (resident o" . cor(oration$ o!liged %imsel" to !e a suret& o" . cor(. "or t%e loan o!tained !& . cor(. "rom #. T%e loan !& H and +ere (aid. Ho+e/er$ . cor(. "ailed to (a& t%e loan at t%e time o" maturit&. Conse,uentl&$ # "iled a "oreclosure o" t%e con'ugal (ro(ert& o" H and in accordance +it% t%e dragnet clause. ill t%e action o" # (ros(er0 2. 1 o!tained a loan "rom C +ort% 2$000$000 and (ledged %is 'e+elr& +ort% 200$000 and %is !racelet +ort% 200$000. 3n addition$ J (ro/ided a c%attel mortgage o/er %is car +ort% 1$000$000 as securit& "or t%e loan !& 1. 1 (aid C 200$000 and demanded t%e release o" t%e !racelet t%at +as !eing (ledge. C re"used to release t%e (ledge. 1 "ailed to (a& t%e loan at t%e date o" maturit&. Accordingl&$ C "oreclosed t%e c%attel mortgage. Also$ C "oreclosed t%e t%ing (ledge to reco/er t%e de"icienc&. Still$ t%ere are de"icienc&. Hence$ C "iled a claim against 1 and J "or t%e de"icienc&. ill t%e action o" C (ros(er0 4. 1istri!ute t%e "ollo+ing assets o" t%e insol/ent 15 t%e assets o" 1 are as "ollo+s5 a.) a car sold "or 1$000$000 !.) land sold "or 2$000$000 c.) s%ares o" stoc- sold "or 1$000$000 d.) cas% in !an- 1$000$0006 1 lia!ilities are as "ollo+s5 a.) loan mortgaged +it% car 2$000$000 !.) loan mortgaged +it% land 1$000$000 c.)claims !& +or-ers 1$000$000 d.) "uneral ex(enses 200$000 e.) medical ex(enses "or +i"e illness 200$000 ".) TWO unsecured loans amounting to 1$000$000 each to J and 3 g.) un(aid !usiness taxes 1$000$000. 7. 1 o!tained a loan "rom C +ort% 2$000$000. 1 issued an undated 1eed o" A!solute Sale o" a (arcel o" land +ort% 18$000$000 to C. T%e o+ners%i( and (ossession o" suc% (ro(ert& remains +it% 1. Alt%oug%$ C manage to get a co(& o" t%e certi"icate o" title o" t%e (ro(ert&. 1 "ailed to (a& t%e loan at maturit&. Accordingl&$ C notari8ed t%e said 1eed o" Sale and trans"er t%e title o" t%e (ro(ert&. Hence$ 1 "iled an action to nulli"& t%e sale and "or t%e cancellation o" t%e trans"er o" t%e certi"icate o" title. 1ecide t%e case +it% reasons. 2. 1e"ine t%e "ollo+ing terms5 a.) Antic%resis !.) (actum commissuriom c.) guarant& d.) !ene"it o" ex%austion e.)9 :. 3s t%ere a need o" an a""ida/it o" good "ait% "or t%e 1eed o" C%attel mortgage to !e /alid0 ;. %at is t%e e""ect to t%e contract o" guarant& i" t%e creditor (ro/ides an extension to t%e de!tor +it%out t%e -no+ledge o" t%e guarantor0 8. *a& t%e creditor reco/er an& de"icienc& a"ter t%e "oreclosure "rom t%e "ollo+ing contract o" securit&0 a.) real estate mortgage !.) c%attel mortgage c.) (ledge <. 9.. 10. 9..