CREDIT TRANSACTION
Acceleration clause is a stipulation stating that on the occasion of the mortgagor’s
default, the whole sum remaining unpaid automatically becomes due and payable.
An Extrajudicial foreclosure may only be affected if in
the mortgage contract covering a real estate, a clause is incorporated therein
giving the mortgagee the power, upon default of the debtor, to foreclose the
mortgage by an extrajudicial sale of the mortgaged property.
A Dragnet clause is a mortgage provision that is
specifically phrased to subsume all debts of past or future origin. It is a
valid and legal undertaking, and the amounts specified as a consideration in the
contracts do not limit the amount for which the pledge or mortgage stands as
security, if from the four corners of the instrument, the intent to secure
future and other indebtedness can be gathered.
If the principal obligation is VOID, the mortgage is void.
A conventional mortgage is a kind of mortgage that is constituted voluntarily by the
contracting parties.
An equitable mortgage is a kind of mortgage where the intention of the parties is to
make the immovable as a security for the performance of the obligation but the
formalities of a real mortgage are not complied with.
Legal Mortgage is a kind of
mortgage required by law to be executed in favor of certain persons.
Foreclosure is a remedy available to the mortgagee by which he subjects
the mortgaged property to the satisfaction of the obligation.
Redemption is a transaction by which the mortgagor reacquires or buys
back the property which may have passed under the mortgage or divests the
property of the lien which the mortgage may have created.
Real Mortgage is a contract whereby the debtor secures to the creditor the fulfillment of the principal obligation, especially subjecting to such security immovable property or real rights over immovable property in case the principal obligation is not fulfilled at the time stipulated.