Practice question
Does recognition of an equitable mortgage itself extinguish the principal debt merely because the deed was not a true sale?
- No; it identifies security for the principal obligation
- Yes; every debt automatically vanishes
- Yes; the lender must always donate the advance
- Yes; all repayments are forbidden
- Yes; the debtor owns the lender’s assets
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1602–1604,2088.
- Lambo GR269085 February2026 MAIN: https://lawphil.net/judjuris/juri2026/feb2026/gr_269085_2026.html Principal debt and equitable mortgage.
- Spouses Lontoc GR217860 January29,2024 MAIN: https://lawphil.net/judjuris/juri2024/jan2024/gr_217860_2024.html Scope of relief and foreclosure distinction.
- GR244422 July2022 MAIN: https://lawphil.net/judjuris/juri2022/jul2022/gr_244422_2022.html Mortgagee remedy.
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