Practice question
A person pays in the 1293/1237 setting without the debtor’s knowledge and demands compulsory subrogation to the creditor’s securities merely because payment occurred. Which is correct?
- Every such payment automatically compels every security transfer.
- The payer may invent new collateral.
- The debtor must give all unrelated property.
- Only a private receipt creates unlimited mortgage rights.
- The stated rule does not allow compelling that subrogation merely on those facts.
Legal references
- Civil Code Articles748,1236-1237,1270-1299 and1302: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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