Page 496 - Important Provisions of The New Civil Code

Article 2087. It is also of the essence of these

contracts that when the principal obligation

becomes due, the things in which the pledge or

mortgage consists may be alienated for the

payment to the creditor.

Article 2112. The creditor to whom the credit

has not been satisfied in due time, may proceed

before a Notary Public to the sale of the thing

pledged. This sale shall be made at a public

auction, and with notification to the debtor and

the owner of the thing pledged in a proper case,

stating the amount for which the public sale is to

be held. If at the first auction the thing is not sold,

a second one with the same formalities shall be

held; and if at the second auction there is no sale

either, the creditor may appropriate the thing

pledged. In this case he shall be obliged to give

an acquittance for his entire claim. (1872a)