Credit Transactions

• A contract of pledge is generally indivisible, hence partial payment does not lead to proportionate extinguishment of the pledge.
• In legal pledge, the excess in the sale proceeds shall belong to the legal pledgor and the legal pledgee shall be entitled to recover in case of deficiency.
• While a real estate mortgage requires registration in order to be valid, an unregistered real estate mortgage is binding between the contracting parties.
• In judicial foreclosure of real estate mortgage, there is right of redemption and equity of redemption.
• In chattel mortgage, there is equity of redemption which must be exercised before the foreclosure sale
• A chattel mortgage over a house is valid.