Credit Transaction

LOAN (Arts.
1933-1961)
- A contract wherein one parties delivers to another, either something not consumable so that the latter
may use the same for certain time and the latter may use the same for and return it (commodatum);
or money, or other consumable things, upon the condition that the same amount of the same kind and
quality shall be paid (mutuum)
KINDS OF LOAN
A. Commodatum – bailor delivers to the bailee a non-consumable thing so that the latter may use it
for a certain time and return the identical thing;
B. Mutuum – lender delivers to the borrower money or other consumable thing upon the condition
that the latter shall return the same amount of the same kind and quality
Commodatum Mutuum
As to Object Non-consummable/non- Non-consummable/non-
fungible (except: if purpose is fungible
not the consumption of the
object)
As to Cause Essentially gratuitous Generally gratuitous although
may be onerous for stipulation
of interest
As to Purpose Use/temporary possession Consumption
As to subject matter Any property Personal property
As to ownership Retained by bailor Passes to the debtor
As to return of thing Exact thing loaned Equal amount of the same
kind and quality
As to risk of loss Bailor Debtor/bailee
As to time of return In case of urgent need and Upon expiration of term only
commission of any acts of
ingratitude, even before the
expiration of the term
1. Deposit (Arts. 1962-2009)

- A contract constituted from the moment a person receives a thing belonging to another, with the
obligation of safely keeping it and returning the same
Purpose: safekeeping and of returning the same
Deposit
As to Cause Essentially gratuitous (except
mutual agreement or
depositary is engaged in
storing goods
As to Purpose Safekeeping
As to subject matter Movable in case of
extrajudicial;
Any property in case of judicial
As to time of return Depositor Can demand return
anytime.
2. Guaranty (Arts. 2047-2084)

- A contract whereby a person called the guarantor binds himself to the creditor to fulfill the obligation
of the principal debtor in case the latter should fail to do so.
 Suretyship – a contract whereby a person engages to be answerable to third person for the debt,
default or miscarriage of the principal or obligor
Guaranty Suretyship
As to Liabilty Liability depends on an Surety assumes liability as
independent agreement to pay regular party to the
the obligation if primary undertaking
debtor fails to do so..
As to Nature of Guarantor is secondarily liable; Surety is primarily liable;
Undertaking collateral undertaking He is an original promisor
As to Time of Guarantor binds himself to pay Surety undertakes to pay if the
payment if principal cannot pay principal does not pay
As to what is insured Insurer of solvency of debtor Insurer of debt
As to Notice of Not bound to take notice of Held to know every default of
Principal’s Default the non-performance of his his principal
principal
As to extinguishment Often discharged by the mere Not discharged by mere
of liability indulgence of the creditor or indulgence of the creditor or
want of notice of default by want of notice of default
3. PLEDGE (ARTICLES 2085-2123)

- A contract wherein the debtor delivers to the creditor or third person a movable or document
evidencing incorporeal rights for the purpose of securing fulfillment of a principal obligation with the
understanding that when the obligation is fulfilled, the thing delivered shall be returned with all its
fruits and accessions.
4. REAL ESTATE MORTGAGE (ARTICLES 2124-2131)

- A contract whereby the debtor secures to the creditor the fulfillment of the principal obligation,
specially subjecting to such security immovable property in case the principal obligation is not
complied with at the time stipulated
5. Chattel Mortgage (ARTICLES 2140-2141, CHATTEL MORTGAGE LAW)

- A contract by virtue of which personal property is recorded in the Chattel Mortgage Register as a
security for the performance of an obligation.
Pledge Real Mortgage

As to Subject Movable immovable
Matter
As to Delivery of Property is delivered Not necessary
property to the pledgee or by
consent of a third
person
As to validity Not valid against Not valid against
against third 3rdperson without 3rdperson without
person knowledge unless a knowledge unless
description of thing registered
pledged and date of
pledge appear in a
public instrument
As to authority to Pledgor can sell only Mortgagor can sell
sell with the consent of even without the
pledgee consent of mortgagee
Pledge Chattel Mortgage

As to requirement Registration in Registration in Chattel
of registration Property Registry is Mortgage Register is
necessary necessary
As to Delivery of Property is delivered Not necessary
property to the pledgee or by
consent of a third
person
As to who shall be Debtor is not entitled Debtor
entitled to the except agreed upon
excess of
proceeds
As to right of Creditor not entitled Creditor is entitled
creditor to notwithstanding
recover deficiency stipulation to the
of proceeds contrary
6. Antichresis (ARTICLES 2132-2139)

- A contract whereby the creditor acquires the right to receive the fruits of an immovable property of
the debtor with the obligation to apply them to the payment of the interest, if owing and thereafter
to the principal of his credit.

Credit Transaction

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LOAN (Arts.

1. Deposit (Arts. 1962-2009)

2. Guaranty (Arts. 2047-2084)

3. PLEDGE (ARTICLES 2085-2123)

4. REAL ESTATE MORTGAGE (ARTICLES 2124-2131)

5. Chattel Mortgage (ARTICLES 2140-2141, CHATTEL MORTGAGE LAW)

Pledge Real Mortgage

Pledge Chattel Mortgage

6. Antichresis (ARTICLES 2132-2139)

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