- Statute
- Civil Code
- Article
- Art. 586
- Topic
- Obligations of the Usufructuary
- Status
- In force
- Book
- BOOK II PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS
- Title
- TITLE VI USUFRUCT
- Chapter
- CHAPTER 3 Obligations of the Usufructuary
- Formerly
- Art. 494 of the old Civil Code
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
Should the usufructuary fail to give security in the cases in which he is bound to give it, the owner may demand that the immovables be placed under administration, that the movables be sold, that the public bonds, instruments of credit payable to order or to bearer be converted into registered certificates or deposited in a bank or public institution, and that the capital or sums in cash and the proceeds of the sale of the movable property be invested in safe securities. The interest on the proceeds of the sale of the movables and that on public securities and bonds, and the proceeds of the property placed under administration, shall belong to the usufructuary. Furthermore, the owner may, if he so prefers, until the usufructuary gives security or is excused from so doing, retain in his possession the property in usufruct as administrator, subject to the obligation to deliver to the usufructuary the net proceeds thereof, after deducting the sums which may be agreed upon or judicially allowed him for such administration. (494)
Intellegal Wiki · In plain terms
If a usufructuary who must post security fails to, the owner may safeguard the property — placing real estate under administration, selling movables, converting credit instruments into safe registered or deposited form, and investing cash in secure holdings — while the usufructuary still receives the income. Alternatively, the owner may keep and manage the property himself until security is given, paying over the net proceeds.
An editorially maintained plain-language explanation of this provision — not legal advice.
Cases applying this article
- Valenzuela Hardwood v. Court of Appeals G.R. No. 102316
- Yu Con v. Glicerio Ipil G.R. No. 10195
- Freight Management Worldwide Services v. American President Lines G.R. No. 203612