Please apply the business laws and regulation of The Philippines in selecting the best choice, and explain briefly. Thank you.

Statement 1. Guarantor who paid the principal debtor's obligation is entitled to subrogation. Statement 2. Guarantor may be held liable for more than the value of the obligation if the principal debtor absconded.

1 point

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

Statement 1. The mortgagor must himself be the principal debtor since it is required in mortgage that mortgagor must be owner of the immovable property given as security of the loan. Statement 2. Creditor can use the thing pledged.

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

Statement 1. In Chattel Mortgage, in case the mortgagor did not appear during the foreclosure proceedings, the mortgagee who casted a bid can be declared as the sole and highest bidder. Statement 2. In Chattel Mortgage, the mortgagor is entitled to redeem the chattel within 90 days from the foreclosure proceedings.

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

Statement 1. The one-year legal redemption period in Real Estate Mortgage shall commence to run only after the registration of the Certificate of Foreclosure Sale with the Registry of Deeds where the immovable property is located. Statement 2. Registration of Real Estate Mortgage is not necessary for its validity.

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

It is an accessory obligation whereby real property is offered as security for a debt or loan.

a. Real Estate Mortgage

b. Antichresis

c. Commodatum

d. Lease

It is an accessory obligation whereby personal property is offered as security for a debt.

a. Pledge

b. Chattel Mortgage

c. Pacto de Retro

d. Mutuum

Nature of a contract of pledge entered into by an agent who although acted within the scope of his authority nevertheless acted on his own behalf.

a. Valid

b. Rescissible

c. Voidable

d. Uneforceable

e. Void

Another term of a deposit constituted by virtue of a court order.

a.Necessary Deposit

b. Voluntary Deposit

c. Sequestration

d. Escrow

A petition to be filed in order to obtain possession of a chattel before its actual foreclosure.

a. Attachment

b. Escrow

c. Replevin

d. Possessory Line

It is a written agreement under which possession and use of property is granted, for a specified time and for a specified payment.

a. Lease

b. Commodatum

c. Real Estate Mortgage

d. None of the above

Statement 1. An unregistered chattel mortgage is valid upon parties but void as to innocent third persons. Statement 2. Real Estate Mortgage is an accessory contract.

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE

Statement 1. The parties to a mortgage of a house and lot cannot validly stipulate that the mortgage property cannot be sold except with the consent of the mortgagee. Statement 2. Real Estate Mortgage to be valid as to third person is sufficient if it has been embodied in a public instrument.

a. Only Statement 1 is TRUE

b. Only Statement 2 is TRUE

c. Both Statements are TRUE

d. Both Statements are FALSE