(Arts. 2132-2139) taxes and charges Art. 2132. By the contract of antichresis the upon the estate creditor acquires the right to receive the fruits of an immovable of his debtor, with (d) creditor be given the obligation to apply them to the payment possession of the (d) there is no such of the interest, if owing, and thereafter to property shall apply to obligation on the part the fruits thereof to of the mortgagee the principal of his credit. the payment of A. DEFINITION: interest, if owing, and The Article defines antichresis. thereafter to the principal of the credit. B. CHARACTERISTICS OF THE CONTRACT. Both are similar in that the subject matter is a Antichresis is: real property. (1) An accessory contract because it secures the performance of a principal obligation. E. DELIVERY OF PROPERTY. Manresa, however, believes that it is an Antichresis requires the delivery by the independent contract; and debtor of the property given as security to the creditor. But such delivery is required (2) A formal contract because it must be in a only in order that the creditor may receive specified form to be valid, i.e., in the fruits and not that the contract shall be writing. binding. The contract does not cover the immovable but only its fruits. C. ANTICHRESIS AND PLEDGE COMPARED. F. RIGHTS OF THE CREDITOR TO THE ANTICHRESIS PLEDGE FRUITS (a) real property (a) personal property Antichresis normally covers all the fruits of the encumbered property, but the law (b) perfected by mere (b) perfected by the gives the parties the freedom to stipulate consent delivery of the thing otherwise. pledged (c) consensual contract (c) real contract The reduction of the amount of fruits available to the creditor does not vary the Both are similar in that the debtor loses control nature of the contract. of the subject matter of the contract. G. OBLIGATION TO PAY INTEREST NOT D. ANTICHRESIS AND REAL MORTGAGE ESSENTIAL. COMPARED. The obligation to pay interest is not of the essence of the contract of antichresis, any ANTICHRESIS REAL MORTGAGE more than it is indispensable in a contract of property is delivered to debtor usually retains loan. The words if owing (interest) reveal the creditor possession of the that it is not essential that the loan should property earn interest in order that it can be (b) creditor acquires guaranteed with a contract of antichresis, only the right to creditor does not have there being nothing in the Code to show that receive the fruits of the any right to receive the antichresis is only applicable to securing the property; hence, it fruits, but mortgage payment of interest-bearing loans. On the does not produce a creates a real right contrary, antichresis is susceptible of real right over the property guaranteeing all kinds of obligations, pure or which is enforceable conditional. against the whole world; creditor, unless there is a stipulation (c) the creditor has no ART. 2133. The actual market value of the a stipulation to the contrary, to pay the taxes fruits at the time of the application thereof and charges upon the estate. If he does not pay to the interest and principal the taxes, he is by law required to pay indemnity shall be the measure of such application. for damages to the debtor.
Where the debtor has paid for the taxes on the
MEASURE OF APPLICATION OF FRUITS TO property which the creditor should have paid, INTEREST AND PRINCIPAL. the amount is to be applied to the payment of The contract does not cover the the debt, and the debtor is entitled to the return immovable but only its fruits. The fruits of of the property free from all encumbrances if he, the immovable which is the object of the in effect, by advancing the taxes, had already antichresis must be appraised at their discharged the debt. actual market value at the time of the (2) Application of the fruits of the estate. application. The foregoing rule will forestall Another obligation of the creditor is to apply the the use of antichresis for purposes of fruits, after receiving them, to the interest, if usury. owing, and thereafter to the principal; hence, the duty of the creditor to render an account of ART. 2134. The amount of the principal and said fruits to the debtor, and the corresponding of the interest shall be specified in writing; right of the latter to apply the said fruits to the otherwise, the contract of antichresis shall debt. be void. (n) The sums spent by the creditor in fulfillment of the obligations under the article shall be charged against the fruits of the property. FORM OF THE CONTRACT. ART. 2136. The debtor cannot reacquire the Article 2134 is an instance when the law enjoyment of the immovable without first requires that a contract be in some form in having totally paid what he owes the order that it may be valid and not only to affect third persons. Even if the antichresis is void, creditor. the principal obligation, however, is still valid. But the latter, in order to exempt himself This article, like Articles 2133 and 2138, is from the obligations imposed upon him by intended to forestall the use of antichresis for the preceding article, may always compel the purposes of usury. debtor to enter again upon the enjoyment of ART. 2135. The creditor, unless there is a the property, except when there is a stipulation to the contrary, is obliged to pay stipulation to the contrary. (1883) the taxes and charges upon the estate. RIGHT OF ANTICHRETIC DEBTOR TO He is also bound to bear the expenses REACQUIRE ENJOYMENT OF PROPERTY necessary for its preservation and repair. The property delivered stands as a The sums spent for the purposes stated in security for the payment of the obligation of the this article shall be deducted from the fruits. debtor in antichresis. Hence, the debtor cannot (1882.) demand its return until the debt is totally paid. However, if the creditor does not want to pay the OBLIGATIONS OF THE ANTICHRETIC taxes and incur the expenses necessary for the CREDITOR. preservation and repair of the property he may compel the debtor to reacquire the enjoyment of The creditor acquires, by virtue of the the same except when there is a contrary contract of antichresis, the right to enjoy the stipulation. fruits of the property delivered to him. ART. 2137. The creditor does not acquire the This right carries two obligations (pars. 1 and 2.) which are the necessary consequences of the ownership of the real estate for nonpayment contract because they arise from its very of the debt within the period agreed upon. nature. Every stipulation to the contrary shall be (1) Payment of taxes and charges upon the void. But the creditor may petition the court estate. The creditor is obliged, unless there is for the payment of the debt or the sale of the He is a mere holder placed in possession of the real property. In this case, the Rules of Court land by the debtor, the owner. on the foreclosure of mortgages shall apply. He cannot acquire the ownership of the real (1884a) estate subject of the antichresis unless he repudiates his status as an antichretic creditor REMEDY OF CREDITOR IN CASE OF NONPAYMENT OF DEBT ART. 2138. The contracting parties may stipulate that the interest upon the debt be If the debt is not paid, it is clear enough that the creditor does not acquire ownership of compensated with the fruits the real estate since what was transferred is not of the property which is the object of the the ownership but merely the right to receive its antichresis, provided that if the value of the fruits. fruits should exceed the amount of interest allowed by the laws against usury, the excess A stipulation authorizing the antichretic creditor shall be applied to the principal. (1885a) to appropriate the property upon the nonpayment of the debt within the period INTEREST IN ANTICHRESIS SUBJECT TO agreed upon is void. THE USURY LAW. The remedy of the creditor is (1) to bring an The antichretic creditor is under action for specific performance; or (2) to petition obligation to apply the fruits of the property in for the sale of the real property as in a satisfaction, first, of whatever interest on the foreclosure of mortgages under Rule 68 of the debt is due, and secondly, to the payment of the Rules of Court. The parties, however, may agree principal. on an extrajudicial foreclosure in the same manner as they are allowed in contracts of The fruits must be appraised on the mortgage and pledge. basis of their actual market value at the time of the application. ACQUISITION BY CREDITOR OF PROPERTY BY PRESCRIPTION If their value should exceed the amount of interest allowed by the Usury Law, the excess The creditor in antichresis and his shall be applied to the principal. successors-in-interest cannot ordinarily acquire Note: The rate of interest on loan or forbearance by prescription the land given to him, any of money goods, or credit is no longer subject to agreement to the contrary being void. any ceiling prescribed under the Usury Law. Possession, for the purpose of acquisitive prescription, must be in the concept of an ART. 2139. The last paragraph of Article owner. 2085, and Articles 2089 to 2091 are applicable to this contract. (1886a) The possession of an antichretic creditor is not in the concept of an owner.
2 GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS), petitioner, vs. HON. COURT OF APPEALS, (Thirteenth Division), JOSE SALONGA, TAN KIAT TIAN and JOSEFINA USMAN joined by her husband ESTEBAN TAN, respondents.