1.

The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default in the performance of the conditions of the mortgage but before the sale of the mortgaged property or confirmation of the sale by the court, is known as A. accion publiciana B. equity of redemption C. pacto de retro D. right of redemption

2. In extra-judicial foreclosure, publication in a newspaper of general circulation once a week for at least three consecutive weeks is necessary if A. the assessed value of the property exceeds P400 B. the value of the property exceeds P400 C. the value of the property is not less than P400 D. none of the foregoing

3. Can the foreigner take possession of the property during the mortgage? A. no, it is prohibited under the constitution B. no, it is contrary to public policy C. yes, if he possesses it as a lessee D. yes, if he possess it for the purpose of foreclosure

4. A mortgaged his property to B for the amount of P5M. Later on, he sold the property to C. Knowing that C is already the owner of the property, B claims from C the payment of the part of the credit secured by the property. Is the act of B proper? A. yes, because the creditor may claim from a third person in possession of the mortgaged property.

B. no, before the creditor can collect from the third person, he must have a demand on the debtor, and the latter should have failed to pay. C. yes, because the mortgage credit is a real right, which follows the property wherever it goes. D. no, since C is not one of the parties in the contract of loan, he should not be held liable.

5. X borrowed money from a bank, secured by a mortgage on the land of Y, his close friend. When the loan matured, Y offered to pay the bank but it refused since Y was not the borrower. Is the banks action correct? A. Yes, since X, the true borrower, did not give his consent to Ys offer to pay. B. No, since anybody can discharge Xs obligation to his benefit. C. No, since Y, the owner of the collateral, has an interest in the payment of the obligation. D. Yes, since it was X who has an obligation to the bank.