Guaranty 2047(meaning); 2048(gratuitous); 2050(consent of the debtor); 2052(valid principal); 2053 (cont guaranty);

2055(GR:Definite Ex:Business***); 2057(guarantor qualities GR:D EX:C if he specified***); 2058(Excussion); 2059(RASIS)- 2060;
2063(compromise agreement); 2065(benefit of division***); 2067(Subrogation); 2068-2070(payment w/o notice); 2071(sue
debtor before payment); 2073(relate to 2065); 2076(extinguish and material alteration); 2077-2080(other ways of
extinguishment);
Pledge and Mortgage 2085(elements); 2088(pactum commissorium)***; 2089(indivisible)***;
Doctrine of mortgagee in good faith (not applicable if the mortgagor is a different person pretending to be the owner; banks or
financing institution)
Pledge- 2093(real contract); 2094-95(objects); 2096(public instrument); 2097(alienation); 2098(right of retention); 2099(good
father); 2101(hidden defects); 2102(fruits of the pledge); 2104(use of the thing pledged); 2105(return of the thing); 21062108(pledge is in danger); 2109(deceived); 2110(return will extinguish); 2111(waiver); 2112(sales of thing pledge); 2113(who
may bid); 2115(proceeds of sale); 2119(right to choose which to be sold)

Ship mortgage decree

Purpose
The purpose of PD 1521 are to accelerate the growth and development of the shipping industry in the
Philippines and to finance the acquisition, construction, purchase or initial operation of vessels.
Salient features of PD 1521
PD 1521 recognizes the creation of preferred mortgage that must be satisfied prior to all other claims
and it allows for the arrest of the vessel which in effect treats the vessel itself as the defendant in an
action.
Preferred Mortgage lien and its requisites
A preferred mortgage lien is one constituted for the financing of the acquisition, purchase,
construction, and initial operation of vessels under the provisions of PD 1521 and which complies with
the following requisites:
1.
2.
3.
4.
5.

It is recorded in the MARIA

Affidavit of good faith
The mortgage does not stipulate the waiver of the preferred status of his claim
The mortgage must be valid
The mortgage includes the whole vessel of domestic ownership

Vessel of foreign ownership

It will be recognize if:
1.
2.

The mortgage, hypothecation or similar charge has been duly and validly executed in
accordance with the laws of the country under which vessel is documented
The mortgage, hypothecation or similar charge has been duly registered accordance with such
laws in a public register either at the port of registry of the vessel or at a central office

Claims preferred over a preferred mortgage lien

The following claims are preferred over preferred mortgage lien:
1.
2.
3.
4.
5.
6.

7.

Taxes
Crews wages
Salvage
Prior maritime liens
General average
Damages arising from tort
Prior preferred mortgage lien