Page 497 - Important Provisions of The New Civil Code

Article 2115. The sale of the thing pledged shall

extinguish the principal obligation, whether or

not the proceeds of the sale are equal to the

amount of the principal obligation, interest and

expenses in a proper case. If the price of the sale

is more than said amount, the debtor shall not

be entitled to the excess, unless it is otherwise

agreed. If the price of the sale is less, neither shall

the creditor be entitled to recover the deficiency,

notwithstanding any stipulation to the contrary.

(n)

Article 2088. The creditor cannot appropriate

the things given by way of pledge or mortgage,

or dispose of them. Any stipulation to the

contrary is null and void. (1859a)