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Credit Transaction CHAPTER 2-Classification of Credits Article 2241. With Reference To Specific

This document outlines the classification and order of preference for creditor claims against a debtor's property in insolvency proceedings under Philippine law. It lists 10 types of claims that have preference over movable property, including taxes, unpaid purchase prices, and claims for services rendered. It also lists 10 types of claims that have preference over immovable property and real rights, such as unpaid real estate prices, contractor claims, and mortgage credits. The document establishes these preferred claims as liens or mortgages on the property and provides rules for how they are satisfied pro rata or exclude other claims up to the property value.

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Jennifer Carlos
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0% found this document useful (0 votes)
50 views3 pages

Credit Transaction CHAPTER 2-Classification of Credits Article 2241. With Reference To Specific

This document outlines the classification and order of preference for creditor claims against a debtor's property in insolvency proceedings under Philippine law. It lists 10 types of claims that have preference over movable property, including taxes, unpaid purchase prices, and claims for services rendered. It also lists 10 types of claims that have preference over immovable property and real rights, such as unpaid real estate prices, contractor claims, and mortgage credits. The document establishes these preferred claims as liens or mortgages on the property and provides rules for how they are satisfied pro rata or exclude other claims up to the property value.

Uploaded by

Jennifer Carlos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CREDIT TRANSACTION (6) Claims for laborers' wages, on the


goods manufactured or the work
CHAPTER 2- Classification of Credits done;

Article 2241. With reference to specific (7) For expenses of salvage, upon
movable property of the debtor, the following the goods salvaged;
claims or liens shall be preferred:
(8) Credits between the landlord and
(1) Duties, taxes and fees due the tenant, arising from the contract
thereon to the State or any of tenancy on shares, on the share of
subdivision thereof; each in the fruits or harvest;

(2) Claims arising from (9) Credits for transportation, upon


misappropriation, breach of trust, or the goods carried, for the price of the
malfeasance by public officials contract and incidental expenses,
committed in the performance of their until their delivery and for thirty days
duties, on the movables, money or thereafter;
securities obtained by them;
(10) Credits for lodging and supplies
(3) Claims for the unpaid price of usually furnished to travellers by hotel
movables sold, on said movables, so keepers, on the movables belonging
long as they are in the possession of to the guest as long as such
the debtor, up to the value of the movables are in the hotel, but not for
same; and if the movable has been money loaned to the guests;
resold by the debtor and the price is
still unpaid, the lien may be enforced (11) Credits for seeds and expenses
on the price; this right is not lost by for cultivation and harvest advanced
the immobilization of the thing by to the debtor, upon the fruits
destination, provided it has not lost its harvested;
form, substance and identity; neither
is the right lost by the sale of the (12) Credits for rent for one year,
thing together with other property for upon the personal property of the
a lump sum, when the price thereof lessee existing on the immovable
can be determined proportionally; leased and on the fruits of the same,
but not on money or instruments of
(4) Credits guaranteed with a pledge credit;
so long as the things pledged are in
the hands of the creditor, or those (13) Claims in favor of the depositor if
guaranteed by a chattel mortgage, the depositary has wrongfully sold the
upon the things pledged or thing deposited, upon the price of the
mortgaged, up to the value thereof; sale.

(5) Credits for the making, repair, In the foregoing cases, if the movables to
safekeeping or preservation of which the lien or preference attaches have
personal property, on the movable been wrongfully taken, the creditor may
thus made, repaired, kept or demand them from any possessor, within
possessed; thirty days from the unlawful seizure. (1922a)

Article 2242. With reference to specific


immovable property and real rights of the
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debtor, the following claims, mortgages and conditions imposed upon the donee,
liens shall be preferred, and shall constitute upon the immovable donated;
an encumbrance on the immovable or real
right: (10) Credits of insurers, upon the
property insured, for the insurance
(1) Taxes due upon the land or premium for two years. (1923a)
building;
Article 2243. The claims or credits
(2) For the unpaid price of real enumerated in the two preceding articles
property sold, upon the immovable shall be considered as mortgages or pledges
sold; of real or personal property, or liens within
the purview of legal provisions governing
(3) Claims of laborers, masons, insolvency. Taxes mentioned in No. 1, article
mechanics and other workmen, as 2241, and No. 1, article 2242, shall first be
well as of architects, engineers and satisfied. (n)
contractors, engaged in the
construction, reconstruction or repair Article 2244. With reference to other
of buildings, canals or other works, property, real and personal, of the debtor,
upon said buildings, canals or other the following claims or credits shall be
works; preferred in the order named:

(4) Claims of furnishers of materials (1) Proper funeral expenses for the
used in the construction, debtor, or children under his or her
reconstruction, or repair of buildings, parental authority who have no
canals or other works, upon said property of their own, when approved
buildings, canals or other works; by the court;

(5) Mortgage credits recorded in the (2) Credits for services rendered the
Registry of Property, upon the real insolvent by employees, laborers, or
estate mortgaged; household helpers for one year
preceding the commencement of the
(6) Expenses for the preservation or proceedings in insolvency;
improvement of real property when
the law authorizes reimbursement, (3) Expenses during the last illness of
upon the immovable preserved or the debtor or of his or her spouse and
improved; children under his or her parental
authority, if they have no property of
(7) Credits annotated in the Registry their own;
of Property, in virtue of a judicial
order, by attachments or executions, (4) Compensation due the laborers or
upon the property affected, and only their dependents under laws
as to later credits; providing for indemnity for damages
in cases of labor accident, or illness
(8) Claims of co-heirs for warranty in resulting from the nature of the
the partition of an immovable among employment;
them, upon the real property thus
divided; (5) Credits and advancements made
to the debtor for support of himself or
(9) Claims of donors or real property herself, and family, during the last
for pecuniary charges or other year preceding the insolvency;
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(6) Support during the insolvency CHAPTER 3- Order of Preference of


proceedings, and for three months Credits
thereafter;
Article 2246. Those credits which enjoy
(7) Fines and civil indemnification preference with respect to specific movables,
arising from a criminal offense; exclude all others to the extent of the value
of the personal property to which the
(8) Legal expenses, and expenses preference refers.
incurred in the administration of the
insolvent's estate for the common Article 2247. If there are two or more credits
interest of the creditors, when with respect to the same specific movable
properly authorized and approved by property, they shall be satisfied pro rata,
the court; after the payment of duties, taxes and fees
due the State or any subdivision thereof.
(9) Taxes and assessments due the (1926a)
national government, other than
those mentioned in articles 2241, No. Article 2248. Those credits which enjoy
1, and 2242, No. 1; preference in relation to specific real property
or real rights, exclude all others to the extent
(10) Taxes and assessments due any of the value of the immovable or real right to
province, other than those referred to which the preference refers.
in articles 2241, No. 1, and 2242, No.
1; Article 2249. If there are two or more credits
with respect to the same specific real
(11) Taxes and assessments due any property or real rights, they shall be satisfied
city or municipality, other than those pro rata, after the payment of the taxes and
indicated in articles 2241, No. 1, and assessments upon the immovable property
2242, No. 1; or real right. (1927a)

(12) Damages for death or personal Article 2250. The excess, if any, after the
injuries caused by a quasi-delict; payment of the credits which enjoy
preference with respect to specific property,
(13) Gifts due to public and private real or personal, shall be added to the free
institutions of charity or beneficence; property which the debtor may have, for the
payment of the other credits. (1928a)
(14) Credits which, without special
privilege, appear in (a) a public Article 2251. Those credits which do not
instrument; or (b) in a final judgment, enjoy any preference with respect to specific
if they have been the subject of property, and those which enjoy preference,
litigation. These credits shall have as to the amount not paid, shall be satisfied
preference among themselves in the according to the following rules:
order of priority of the dates of the
instruments and of the judgments, (1) In the order established in article
respectively. (1924a) 2244;

Article 2245. Credits of any other kind or (2) Common credits referred to in
class, or by any other right or title not article 2245 shall be paid pro rata
comprised in the four preceding articles, regardless of dates. (1929a)
shall enjoy no preference. (1925)

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