As a general rule, a choice of law in a contractual agreement would be recognized by a Philippine court, as there are essential factors that justify the choice (for example. B, part of the contract has been executed in that jurisdiction, a party is established in that jurisdiction). The existence of a guarantee agreement and a possible guarantee on these guarantees could jeopardize the borrower`s ability to obtain more financing from other lenders. Collateral-finished assets are subject to the conditions of the first lender, which would mean that the guarantee of an additional loan on the same land would result in cross-protection. In particular, a security interest in a material asset may be supplemented by registration or holding (real or constructive);19, while a security interest in investment real estate or a deposit account may be supplemented by registration or control (d. h. by (1) the creation of a securities interest in favour of the institution or deposit intermediary. , (2) the conclusion of a control agreement or (3) for assets not held by an intermediary, the rating of security interest in the issuer`s books.20 The primary laws governing the creation, perfection and enforced execution of a mortgage on real estate are the Civil Code and Law No. 3135. According to Article 2085 of the Civil Code, it is necessary that mortgagor is the owner of the mortgaged object in order to constitute a mortgage.
In general, there is no particular form for the mortgage contract. The document is not required to be recorded in the record for validity. The registration of security interests and observations in the certificate of ownership (if the pawn object is a country) binds third parties and constitutes a public communication to third parties concerning the creation of security interest from the date of its registration. However, an unregistered mortgage is binding between the parties7 For a deposit account or investment property whose secured creditor is the deposit establishment, the order of priority is: (1) the right of the deposit-taking institution to reward the deposit account; 2) the creation of a securities interest in favour of the deposit-taking or intermediary; (3) the conclusion of a control agreement; and (4) Registration.22 Commercial loans in the Philippines are generally offered by banking institutions. These are subject to the supervision of the Pilipinas of Bangko Sentral (BSP). In addition, credit companies may also be authorized by the Securities and Exchange Commission to participate in lending activities pursuant to the Lending Company Regulation Act of 2007. In general, the activities of these credit companies are limited to small business loans and personal loans. The creation and development of security interests during the transitional period is subject to the PPSA.34 During this period, the registration of a security interest with the national registration authority may be made in accordance with Section 4 of the Chattel Mortgage Act.35 However, the validity of this rule is questionable, as the PPSA repealed the Chattel Mortgage Act. The PPSA has amended or repealed certain laws that are inconsistent with its provisions5.