Credit Transactions - Finals

Reconstituted questions of Finals under Atty. MEV, 8 October 2009.

1. Distinguish Insolvency from Bankruptcy. What is permitted of the debtor under the Insolvency Law?
2. Distinguish Special preferred credits from Ordinary preferred credits. What is the rule of preference for specific movable property?
3. Bayan Co. had a mortgage credit from Pilipinas Co. in the amount of P500,000, secured by a 1st chattel mortgage on a property. Bayani Co. also has a credit in the amount of P1,000,000 secured by a 2nd chattel mortgage on the same property. Bayan Co. partially paid P300,000 of his credit with Pilipinas Co. Thereafter, Bayani Agbayani acquired the credit from Pilipinas Co. and increased the credit to P50,000. Who has preference on the mortgaged property, the 2nd mortgagee or the transferee?
4. Aida executed a "Deed of Sale with Assumption of Mortgage" with Adel. In the agreement, for and in consideration of assuming the mortgage and paying the indebtedness of Aida with Asia Trust, Adel shall enjoy possession and enjoyment of the property. Discuss the nature of the contract between Adel and Aida.
5. Discuss the right of redemption in the following circumstances: (a) period the right can be exercised; (b) effect when the right is not exercised; (c) effect when the right is exercised; (d) sale of the property to a third party; and (e) sale is not registered and without the consent of the mortgagee.
6. BONUS: Enumerate the four (4) exceptions to the rule of the divisibility of pledge.