PLEDGE OR MORTGAGE INDIVISIBLE, EXCEPTIONS

Category: Obligations and Contracts

PLEDGE OR MORTGAGE INDIVISIBLE, EXCEPTIONS

Art. 2089. A pledge or mortgage is indivisible, even though the debt may be divided among the successors in interest of the debtor or of the creditor.
 
Therefore, the debtor’s heir who has paid a part of the debt cannot  ask  for  the  proportionate  extinguishment  of  the pledge  or  mortgage  as  long  as  the  debt  is  not  completely satisfied.
 
Neither can the creditor’s heir who received his share of the debt  return  the  pledge  or  cancel  the  mortgage,  to  the prejudice of the other heirs who have not been paid.
 
From these provisions is expected the case in which, there being several things given in mortgage or pledge, each one of them guarantees only a determinate portion of the credit.

The   debtor,   in   this   case,   shall   have   a   right   to   the extinguishment of the pledge or mortgage as the portion of the  debt  for  which  each  thing  is  specially  answerable  is satisfied. (1860)
 
Art. 2090. The indivisibility  of a  pledge  or  mortgage is  not affected  by  the  fact  that  the  debtors  are  not  solidarily liable. (n)
 

PLEDGE OR MORTGAGE INDIVISIBLE

> Rule applies even if the obligation is joint and not solidary
> The divisibility of the principal obligation doesn't affect the indivisibility of the mortgage or pledge
 

EXCEPTIONS TO THE RULE OF INDIVISIBILITY

1.   Where each one of several things guarantees determinate portions of credit
2.   Where only a portion of the loan was released
3.   Where there was failure of consideration
4.   Where there is no debtor-creditor relationship
 

FORECLOSURE  OF  MORTGAGE  CONSTITUTED  ON  SEVERAL PROPERTIES

> A mortgage even constituted on  several properties is  one and  indivisible,  that  is,  it  cannot  be  divided  among  the several properties and the mortgagee has the right to have the  properties  either  or  both,  jointly  or  singly,  sold  to satisfy his claim

> Further,  the  sale  of  the  mortgaged  properties  cannot  be set aside in the absence of evidence to show that a better price   could   have   been   obtained   if   they   were   sold separately,  or  the  sale  of  one  or  some  alone  would  bring sufficient proceeds to satisfy the mortgage credit