R.E.M.

Chattel Mortgage PLEDGE Personal Security Others

1) GUARANTY
-Immovable -Personal -Personal properties/ >Letters of Credit
property/ real properties/Personal personal rights Art. 2047-2084 (NCC)
rights rights
-3rd person involved >Trust Receipts
-Formal -Formal contract -Real contract Law
contract (required to be (Subject to -subsidiary and conditional liability
(civil code registered in RD) constructive delivery)
mentions the - unilateral >Financial Lease
word and other
“document”; -registration is an -w/ or w/o notice to principal debtor Financing
need to be essential element (in Transactions
executed) RD/s) else, not valid Art. 2050. If a guaranty is entered into without the (Financing
knowledge or consent, or against the will of the principal Company Act)
debtor, the provisions of Articles 1236 and 1237 shall apply.
-subject to -not subject to -subject to future >Unsecured
Article 1236. The creditor is not bound to accept payment or
future future obligations obligations Loans
performance by a third person who has no interest in the
obligations
fulfillment of the obligation, unless there is a stipulation to
Ex:
the contrary.
-substitute -stipulations on -substitute properties Whoever pays for another may demand from the debtor
Microfinancing-
properties future substitute Valid stipulation what he has paid, except that if he paid without the RA 8425
valid properties not valid knowledge or against the will of the debtor, he can recover >>“Collateral-
stipulation stipulation only insofar as the payment has been beneficial to the free
debtor. (1158a) arrangement”
-property has -Accessory contract ;
been identified Article 1237. Whoever pays on behalf of the debtor without but alternative
or set apart -Subsidiary contract the knowledge or against the will of the latter, cannot arrangements
from the mass compel the creditor to subrogate him in his rights, such as exists
of the prop of -Art. 2085-2123 those arising from a mortgage, guaranty, or penalty. (1159a)
the debtor- (NCC)
mortgagor as
security for the
fulfillment in
case of default -to pledge
of payment movable/Incorporeal
rights
“mortgagee in
good faith not -not valid against 3rd
apply to person unless
banks” notarized
(persons
dealing with
registered Doubt: pledge >
land” =public dacion en pago
interest

2) SURETYSHIP

- Direct / primary obligation

- Person binds himself solidarily w/ the debtor
- Guarantor w/ solidary liability