Legal Question in Credit and Debt Law in Philippines

is a mortgaged car can be used as a collateral? a car was given to as a collateral for the cash money he borrowed from me, what is the legallity for this situation?


Asked on 5/24/11, 9:08 am

1 Answer from Attorneys
VOLTAIRE T. DUANO VOLTAIRE T. DUANO LAW OFFICE

Yes, it can still be a collateral. However, the mortgagee is not bound by your agreement. Thus, in case your debtor defaulted in paying the car the mortgagee will have no choice but to foreclose the mortgage.

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Answered on 5/25/11, 4:08 am


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