LAW ON CREDIT TRANSACTIONS

Real contract

What kind of contract is a pledge?

Formal contract

what kind of contract is chattel mortgage contract

Delivery

What is the additional essential element in pledge?

Registration with Chattel Mortgage Registry

What is the additional essential element in Chattel mortgage?

None (subject to statute of frauds)

What is the additional essential element in Real estate mortagage?

Consensual

What type of contract is real estate mortgage?

Public instrument

What is the formality of pledge?

Affidavit of good faith

What is the formality of Chattel mortgage?

Public instrument registered with registry of property deeds

What is the formality of Real estate mortgage?

Absolutely prohibited

Is there a recovery of deficiency in pledge?

Allowed, except when subject to recto law

Is there a recovery of deficiency in chattel mortgage?

Allowed, except when the mortgagor is not the debtor, unless stipulated

Is there a recovery of deficiency in real estate mortgage?

None

Is there a redemption in pledge?

None

Is there a redemption in Chattel mortgage?

Void

Status of pactum de non aliendo

Extrajudicial: 1yr, except 3 months or until registration of resale, whichever earlier

Judicial: 90-120 days or until court confirmation

Is there a redemption in Real estate mortgage?

Allowed if creditor-pledgee consented

Is sale during pendency allowed in pledge?

Not allowed

Is sale during pendency allowed in chattel mortgage?

Allowed absolutely. Pactum de non aliendo is void

Is sale during pendency allowed in real estate mortgage?

None

Is there a dragnet clause in pledge?

None

Is there a dragnet clause in chattel mortgage?

If there is a stipulation

Is there a dragnet clause in pledge?

Dragnet clause/blanket mortgage clause

agreement that extends the collateral to cover past, present, and future debts owed by the same borrower to the same lender.