Indivisibility of Pledge, Mortgage, Antichresis Quiz

Key Differences between Chattel Mortgage and Pledge

• A chattel mortgage is a contract where personal property secures payment or performance of an obligation, whereas a pledge involves the delivery of possession of the movable property to the creditor.

Personal Security Act (PPSA)

• The PPSA denotes a contract where personal property secures payment or performance of an obligation as a "security agreement".

Properties in Chattel Mortgages and Pledges

• Movable properties can be the object in both chattel mortgages and pledges.

Chattel Mortgage Register

• If a movable property is recorded in the Chattel Mortgage Register as security, it represents a chattel mortgage.

Superseding Legislation

• The Personal Security Act (PPSA) supersedes the Civil Code provisions on pledge and chattel mortgage.

Fulfillment of Principal Obligation

• When the principal obligation is fulfilled, the movable property in a chattel mortgage is returned to the debtor.

Divisibility of Pledge or Mortgage

• A pledge or mortgage can be divisible when the debt is also divisible.

Partial Payment of Debt

• If a debtor's heir pays only a part of the debt related to a pledge or mortgage, the pledge or mortgage remains in effect for the remaining amount.

Pactum Commissorium

• Pactum commissorium comes into effect when the debtor and creditor agree that the creditor can sell the pledged property without judicial intervention.
• Pactum commissorium is considered null and void.

Release of Loan Secured by Pledge or Mortgage

• If only a portion of a loan secured by a pledge or mortgage was released, the pledge or mortgage remains in effect for the remaining amount.

Ownership of Pledged Thing

• When the pledgee consents to the alienation, the ownership of the thing pledged remains with the debtor.

Rights of Creditor

• The contract of pledge gives the creditor the right to retain the pledged thing until the debt is fully paid.

Care of Pledged Thing

• The pledgor is responsible for taking care of the thing pledged with the diligence of a good father of a family.

Deposit of Pledged Thing

• The pledgee can deposit the thing pledged with a third person if the pledgee is unable to keep it.

Responsibility of Pledgor

• According to Article 2101, the pledgor is responsible for any defects or damages to the pledged thing.

Handling of Fruits, Income, or Interests

• The pledgee should handle any fruits, income, or interests earned by the pledged thing with the diligence of a good father of a family.

Pledged Credit Becoming Due

• If a pledged credit becomes due before it is redeemed, the pledgee can take action to collect the debt.

Multiple Things Being Pledged

• In the case of multiple things being pledged, the pledgee has the right to retain all the pledged things until the debt is fully paid.

Third Party Securing an Obligation

• A third party securing an obligation by pledging their property has the right to redeem the pledged property.

Pledges Created by Operation of Law

• Pledges created by operation of law, like those in articles 546, 1731, and 1994, are governed by the relevant laws.

Sale of Pledged Thing

• A thing under a pledge by operation of law can be sold if the debtor fails to fulfill the obligation.

Failure to Hold Public Auction

• If the creditor fails to hold a public auction within one month after demand for sale, the debtor can take action to remedy the situation.

Similarity between Pledge and Mortgage

• A similarity between a pledge and a mortgage is that both involve the use of personal property as security for an obligation.

Antichresis

• Antichresis is a type of security where the creditor is entitled to the fruits or income of the pledged property.

Key Difference between Pledge and Mortgage

• A key difference between a pledge and a mortgage is that a pledge involves the delivery of possession of the movable property to the creditor, while a mortgage does not.

Commonality between Mortgage and Antichresis

• A commonality between mortgage and antichresis is that both involve the use of personal property as security for an obligation.

Difference between Antichresis and Mortgage

• Antichresis differs from mortgage in that antichresis involves the creditor's entitlement to the fruits or income of the pledged property.

Pledge Requirement

• A requirement specifically mentioned in relation to a pledge is that the pledgor must take care of the thing pledged with the diligence of a good father of a family.

Test your knowledge on the general rule and exceptions regarding the indivisibility of pledge, mortgage, and antichresis. Understand when these securities are considered indivisible, with exceptions such as guarantees for a determinate portion of credit and failure of consideration.