Quick answer: Republic Act No. 11057 provides a modern system for using personal property—such as equipment, inventory, receivables, deposit accounts, and other movable assets—as collateral. A security agreement creates the interest between the parties; perfection makes the security interest effective against third parties, commonly through registration, possession, or control. What the PPSA changes Concept Practical…
Quick answer: In an ordinary real estate mortgage, a lender may generally pursue the unpaid balance after applying the foreclosure proceeds, if the debt and deficiency are proven. But the result can change under a special law, the transaction documents, defective foreclosure procedure, prescription, or rules protecting an installment buyer. The basic computation A claimed…
Quick answer: A real estate mortgage secures a principal obligation with immovable property. The mortgagor must own the property and have capacity to dispose of it. The mortgage should be recorded in the Registry of Deeds to bind third persons, and the lender cannot simply appropriate the property after default. Core validity checks Question Why…
Quick answer: A guarantor who lawfully pays the creditor may generally recover from the debtor the amount paid, legal interest from the time the debtor is notified of the payment, qualifying expenses, and damages when proper. Under Civil Code Articles 2066–2067, payment also subrogates the guarantor to the creditor’s rights against the debtor, subject to…
Understand when an ordinary guarantor may require exhaustion of the debtor’s assets and when the creditor can proceed directly.
Learn why an ordinary guarantor is generally secondarily liable while a surety binds itself solidarily with the principal debtor.
Understand why lifting statutory interest ceilings did not remove judicial review of unconscionable rates and oppressive loan charges.
Understand contractual interest, interest as damages, the 6% legal rate framework, and the dates needed for an accurate computation.
Learn whether a creditor may collect only a debtor’s share or the whole obligation, and what happens after one solidary debtor pays.
Learn when a creditor legally forgives a debt, what acceptance and form are required, and how remission affects security and guarantors.