- Statute
- Philippine Civil Code
- Article
- Art. 2112
- Topic
- Pledge
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE XVI PLEDGE, MORTGAGE AND ANTICHRESIS
- Chapter
- CHAPTER 2 Pledge
- Formerly
- Art. 1872a of the old Civil Code
- Year
- 1949
- Cited by
- A Supreme Court decision
The provision
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)
Intellegal Wiki · In plain terms
Sets the procedure when a pledge debt goes unpaid: the creditor has the pledged thing sold at public auction before a notary public, after notifying the debtor and owner and stating the amount due. If it fails to sell at a first and then a second auction, the creditor may keep the thing—but must then treat the entire debt as fully discharged.
An editorially maintained plain-language explanation of this provision — not legal advice.
Cases applying this article
- Paray v. Rodriguez G.R. No. 132287