1. All the Civil Code provisions on pledge were repaired by the Personal Properly Security Act.

2. Deposit accounts and intellectual property rights may now be used as loan collateral.
3. Under the PPSA, future income cannot be pledged to secure an obligation because of the
uncertainty of income.
4. An airplane may be pledged or mortgaged.
5. Under the PPSA, delivery of the thing pledged is necessary to perfect the contract.
6. A security interest by way of pledge must be in a public instrument.
7. Under the PPSA, the pledgee must return to the pledgor the excess of proceeds over the debt.
8. Under the PPSA, the pledgor is liable for any deficiency of the proceeds.
9. The bailee in commodatum acquires the use of the thing loaned as well as its fruits for the
duration of the contract.
10. Consumable goods may be the subject of commodatum.
11. A thief, lessee, or unsufructuary may be a bailor in commodatum
12. The bailee in commodatum can neither lend nor lease the object of the contract to a third
person.
13. The bailee is obliged to pay for the ordinary expenses for the use and preservation of the thing
loaned.
14. The bailee is liable for the loss of the thing if he lends or leases the thing to a third person who is
not a member of his family except when it is lost through a fortuitous event.
15. The bailor may demand the thing at will if neither the duration of the contract nor the use to
which the thing loaned should be devoted has been stipulated.
16. The bailor may exempt himself from the payment of expenses or damages by abandoning the
thing to the bailee.
17. Only in loan contracts, with or without security, may interest be demanded.
18. A contract of deposit is binding and perfected even before the delivery of the thing.
19. Exceptionally, the ownership of the thing loaned may be retained by the Creditor.
20. A stipulation to pay interest in a contract if loan is unenforceable if not reduced in writing.
21. Compounding of interest is allowed only by agreement.
22. Payment of interest in the absence of stipulation shall be governed by solution indebiti.
23. The current legal rate of interest for forbearance of money is 6% per annum.
24. A contract of irregular deposit allows the depository to use the property of the depositor.
25. Movable and immovable things may be the object of a voluntary deposit.
26. A contract if deposit must be in writing in order to be valid.
27. The depository cannot deposit the thing with a third person.
28. The depository shall be liable or the loss of the thing deposited if he allows others use it, even
though he himself may have been authorized to use the same.
29. The depository can demand that the depositor prove his ownership of the thing deposited.
30. When there are two or more depositors who are not solidary, each one cannot demand more
than his share if the thing can be divided.
31. The depository may not return the thing deposited upon demand if a specified period or time
for such return has been fixed.
32. A deposit is necessary when it is made in compliance with a legal obligation.
33. A gratuitous deposit is extinguished upon the death of either the depositor or the depositary.
34. The insolvency of the guarantor entitles the creditor to demand another guarantor.
35. Future debts of unknown amount may be guaranteed and the guarantor may be sued even
before the debt is liquidated.
36. Guaranty must be express and is never presumed.
37. The guarantor can bind himself for more or less than what the debtor is liable to pay.
38. The debtor may interpose against the guarantor all defenses available against the creditor.
39. The benefit of exhaustion available to the guarantor is not available where the guaranty is in the
form of a mortgage of the guarantor’s property.
40. Execution may be enforced against the guarantor whenever a writ of execution is issued against
the debtor.
41. If the guarantor pays before the due date, he cannot proceed against the debtor until that date
arrives, unless the debtor ratified the payment.
42. The pledgee cannot deposit the thing pledged with a third person, unless there is a stipulation
authorizing it.
43. The pledgor remains the owner of the thing pledged until its sale.
44. The pledgor has the right to the return of the thing pledged upon extinction of the principal
obligation.
45. The pledge may use the thing pledged on his own will.
46. In a real estate mortgage, a stipulation forbidding the owner from alienating the immovable is
valid.
47. The mortgage credit may be alienated or assigned to a third person, in whole or in part.
48. In real estate mortgage, the creditor is given the right to appropriate the fruits.
49. Antichresis may be constituted only on immovable properties.
50. A pledgor who is not the debtor, has the rights of a guarantor to seek reimbursement,
subrogation, or excussion and is not prejudiced by any waiver of defense by the debtor.
51. The incorporeal right of lease over a condominium unit evidenced by a notarized contract of
lease may be validly pledged.
52. A pledge may be a third party who is not the owner of the thing pledged is void because only an
owner without exception may pledged his property.
53. An agreement to the effect that the thing pledged should be applied in payment of the
obligation by way of dacion en pago is void because this will constitute pactum commissorium.
54. If there are three debtors who are jointly liable, the creditor may enforce the obligation of each
against the whole thing pledged.
55. The pledgee cannot use the thing pledged without the express authority of the pledgor even if
its preservation so requires.
56. All fruits produced by the thing pledged are subject to legal compensation even in the absence
of a stipulation to this effect.
57. The pledgee of a pawn ticket must renew it when necessary.
58. Unless stipulated otherwise, the return of the thing pledged to the owner extinguishes the
pledge.
59. In all instances, the pledge is extinguished when the thing pledged is in the possession of the
pledgor.
60. The pledgor must pay the necessary and useful expenses incurred by the pledgee on the thing
pledged.

61-68. What are the modes of extinguishing guaranty?

69-74. What are the obligations of the pledgee in preservation of the thing?

75-77. What are the obligations of the depositor?

78. In antichresis, the debtor is obliged to account to the creditor for fruits and their application to
the interest and the principal of the credit.

79-81. What are the kinds of necessary deposits?

82-85. How is voluntary deposit extinguished?

86-89. What are the special rules governing judicial deposit?

90-93. What are the characteristic features of guaranty?

94-98. In guaranty, in what cases is the Benefit Exhaustion not available?

99-102. What are the rights of the guarantor before making payment?

103. The failure on the part of the creditor to demand payment after the debt becomes due will
extinguish the guaranty.

104-108. What is a clawback cause? If it is incorporated in a contract of agency against the paid
commission of the commission agent in the event of annual profit shortfall, how shall it be treated?