UNIVERSITY OF THE CORDILLERASCOLLEGE OF LAW

SECURED TRANSACTIONSI. Complete the table with legal basis (meaning: cite the law or jurisprudence)

PLEDGECHATTEL MORTGAGE REAL ESTATE MORTGAGEANTICHRESIS

1. What are the requisites for the validity of the contract?

2. What is the effect of the non-registration of the contract?

3. How is the contract perfected

4. What is/are the subject matter/s of the contract?

5. Can future goods/after-acquired property/fruits be covered by the contract?

6. Can the contract secure the payment of future debts?

7. What law/s govern/s the sale of the bailment in case of non-payment of the principal obligation?

8. In case of the sale of the bailment, how will the proceeds be applied?

8. How will any excess in the proceeds of the sale be treated?

9. If the proceeds of the sale are not sufficient, may the creditor claim the eficiency from the debtor?

10. In case of sale, may there be a redemption of the bailment in this contract?

Part II. Answer as required: All answers SHOULD be supported by laws, legal principles, or decided cases. The rule of strictissimi juris shall apply against you.1. Why was the legal interest rate on loans and forebearances of money lowered to 6% per annum?2. Is guaranty considered a bailment as defined by law?3. What is a pactum commissorium? Is there any exception to the rule that a pactum commissorium is void?4. Differentiate the concepts of pactum commisorium and dacion en pago.5. Is the private sale of the bailment allowed to fulfill the obligation secured by the bailment? 6. What is the effect of non-registration in case of a chattel mortgage? What is the effect of non-registration in case of a real estate mortgage?7. What is redemption? What are the different kinds and periods of redemption?8. When is redemption a matter of equity? When is redemption a matter of right?9. What is the effect of absence of notice to the debtor in case of an assignment of credit?10. Is the consent of the mortgagor to the assignment of credit necessary if said mortgagor is not the debtor? Why?11. Is the consent of the creditor-mortgagee necessary for the alienation of the thing mortgaged? Why?12. May a second mortgagee foreclose upon a mortgage ahead of a senior encumbrancer? Why?13. What do you understand in the ruling of the Supreme Court that what is actually mortgaged to the second mortgagee is the mortgagors equity of redemption?14. Why is there a need for the bailment to be placed in the possession of the creditor before it can be sold on foreclosure?15. Is the failure to re-publish the notice of sale if the auction sale in an extrajudicial foreclosure is postponed a ground for invalidating the sale?16. What is a salda ilocana? Is it a mortgage?17. What is a dragnet clause?18. May an alien be the mortgagee in a real estate mortgage? May an alien be the mortgagor in a chattel mortgage?19. Should the contract of antichresis itself be in writing for it to be valid?20. What are the different classification of credits under the provisions on concurrence and preference of credits?21. When is there concurrence and preference of credits?22. What is the rule of preference of credits and when is it applicable?23. What laws govern insolvency in the Philippines? In case of conflict between the rule of preference and concurrence of credits on one hand and insolvency laws on the other, which should prevail? 24. State the rules as to the order of preference of credits as regards the free property of the debtor.

Part III. Juan owns two parcels of land located in La Trinidad, Benguet (with an actual market value of P5M), and Tuba, Benguet (with an actual market value of P1.5M). He also owns one Elf truck (P500,000.00) and a Pajero (P800,000.00). He is renting a unit at the Wright Park Place Condominium which he filled with expensive appliances and pieces of furniture with a total amount of P1M. As of February 12, 2014, Juan has the following debts:

CREDITOR AMOUNT SECURITY

1. BDOP5.5MREM over La Trinidad lot

2. Summit BankP2MREM over Tuba lot

3. DLending Co.P300,000.00Chattel mortgage over the elf truck

4. Maria NaP500,000.00Chattel mortgage over the Pajero

5. Jose UyP1MNone

6. Wright Park Place Condominium (unpaid rentals)P800,000.00None

7. Municipality of Tuba(unpaid real estate taxes)P25,000.00None

8. D Motor Repair shop ( repairs of the Elf truck)P75,000.00None

a. What are the different kinds of credits?b. Classify the credits in accordance with your answer in letter (a).c. Apply the rules of preference of credits for the payment of Juans debts.