D. Credit Transactions

XII. CREDIT TRANSACTIONS

A. Mutuum and Commodatum (Civil Code, arts. 1933-1961)

B. Deposit (Civil Code, arts. 1962-2009)

C. Guaranty and Suretyship (Civil Code, arts. 2047-2081)

D. Real Estate Mortgage (Civil Code, arts. 2124-2126 and 2128-2131)

E. Personal Property Security Act (R.A. No. 11057)

Credit Transactions

include all transactions involving the purchase or loan of goods, services or money in the present with a promise to pay or deliver in the future. They may be secured or unsecured.

Types of Credit Transactions

• Secured transactions – those supported by a collateral or an encumbrance of property.
• Unsecured transactions – those supported only by a promise to pay or the personal commitment of another such as a guarantor or surety

Security is something given, deposited or serving as a means to ensure the fulfillment or enforcement of an obligation or of protecting some interest in the property.