Consider the following cases:

I.Jonathan owes Coco P10,000. To secure the debt, Jonathan pledged his cell phone. Jonathan defaults. The cell phone is sold for P9,000 at the public auction.

II.Jonathan bought a car for P360,000 from Renz. The price. Which is payable in 12 equal monthly installments of P30,000 is secured by a chattel mortgage on the car. After paying 2 installments, Jonathan defaults in the payment of 3rd installments and subsequent one. Renz forecloses the chattel mortgage and the car is sold at the public auction for P280,000.

The deficiency is recoverable in:

a Both I. and II.

b I only

c II only

d No deficiency is recoverable in both I and II.

explain