INTRO
Refer to contracts involving the purchase or loan of goods, services, or money in the present with a promise to pay or deliver in the future
CREDIT TRANSACTIONS
___ is that which a debtor may compel a creditor to accept in payment of a debt
LEGAL TENDER
Created by will of the Parties thru Contract
VOLUNTARY DEPOSIT
What falls under Personal Security?
GUARANTY AND SURETYSHIP
___ is the security interest created or provided for by an agreement or other transaction that was made or entered into before the effectivity of PPSA and that had not been terminated before the said effectivity
PRIOR INTEREST
Credit extended by a creditor to a consumer for the sale or lease of any consumer product or service under which part or all of the price or payment therefor is payable at some future time, whether in full or in installments
CONSUMER CREDIT
Credit card is a legal tender - TRUE OR FALSE
FALSE - Credit card is not a legal tender
Takes place when an attachment or seizure of property in litigation is ordered.
Judicial (Sequestration)
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
GUARANTY
A security interest is enforced either by recovery, disposition, or retention, In certain cases, the secured creditor must first seek repossession of the collateral - T or F
TRUE
The fulfillment by the debtor is supported only by a bare promise to pay
UNSECURED TRANSACTIONS
A clause which authorizes the automatic increase in interest rate
ESCALATION CLAUSE
A contract constituted from the moment a person receives a thing belonging to another, with the obligation of safely keeping it and of returning the same.
DEPOSIT
A contract whereby a person, called the surety, binds himself solidarily with the principal debtor to fulfill the obligation of the latter in favor of the creditor.
SURETYSHIP
Effect of Perfection of Security Interest
A security interest becomes effective against third parties
Supported by a collateral or an encumbrance of property
SECURED TRANSACTIONS
_____ Interest may also be imposed by law or by courts as penalty or indemnity for damages
Compensatory Interest
Is earnest money a deposit?
No. Earnest Money is not a deposit under Art. 1482 of the Civil Code. It is part of the purchase price.
Is guaranty is gratuitous? Yes or No.
Yes.
THE FIRST STEP IN APPLYING RULES ON PREFERENCE AND CONCURRENCE OF CREDITS, AS AMENDED BY R.A. 11057
Determine if the liabilities exceed the assets
When a mortgage, pledge, antichresis, charge, or lien or other device used to have property held, out of which the person to be made secure can be compensated for loss
REAL SECURITY
Accrued interest shall not earn interest - T or F
FALSE.
_____ deposit is made in compliance with a legal obligation
NECESSARY DEPOSIT
It is benefit which the guarantor can avail of to defeat a creditors claim until the latter exhausts the assets of, and the legal remedies against, the principal debtor. The guarantor can raise the benefit of excussion against a pursuing creditor.
THE BENEFIT OF EXCUSSION
Perfection of Security Interest
By Registration
By Possession
By Control