Page 495 - Important Provisions of The New Civil Code

PLEDGE AND MORTGAGE

Article 2085. The following requisites are

essential to the contracts of pledge and

mortgage:

(1) That they be constituted to secure the

fulfillment of a principal obligation;

(2) That the pledgor or mortgagor be the

absolute owner of the thing pledged or

mortgaged;

(3) That the persons constituting the pledge

or mortgage have the free disposal of their

property, and in the absence thereof, that

they be legally authorized for the purpose.

Third persons who are not parties to the

principal obligation may secure the latter by

pledging or mortgaging their own property.

(1857)