LOAN

CONCEPT:
Art. 1933. By the contract of loan, one of the parties
delivers to another, either something not consumable
so that the latter may use the same for a certain time and
return it, in which case the contract is called a
commodatum; or money or other consumable thing, upon
the condition that the same amount of the same kind and
quality shall be paid, in which case the contract is simply
called a loan or mutuum.
Commodatum is essentially gratuitous.
Simple loan may be gratuitous or with a stipulation to pay
interest.
In commodatum the bailor retains the ownership of the
thing loaned, while in simple loan, ownership passes to the
borrower. (1740a)
Characteristics
1. Real Contract-because the
delivery of the thing is necessary
for the perfection of the contract.
2. Unilateral Contract-because once
the subject matter has been
delivered, it creates obligation on
the part of only one of the parties,
the borrower.
Kinds of loan:
1. Commodatum
2. Simple loan or Mutuum
Commodatum and Mutuum Distinguished:
1. Commodatum involves something not consumed
while in Mutuum, the subject matter is money or
other consumable thing;
2. In Commodatum, ownership of the thing loaned is
retained by the lender while in Mutuum, the
ownership is transferred to the borrower;
3. Commodatume is essentially gratuitous while
Mutuum may be gratuitous or onerous (interest);
4. In Commodatum, the borrower must returned the
same thing loaned while in Mutuum the borrower
need only to pay the same amount of the same kind
and quality;
5. In Commodatum, may involve real or personal
property while in Mutuum refers only to personal
property;
6. Commodatum is a loan for use while Mutuum is a
loan for consumption;
7. In Commodatum the bailor may demand the return
of the thing loaned before expiration of the term in
case of urgent need while in Mutuum the lender
may not demand its return before the lapse of the
term agreed upon;
8. In Commodatum, the loss is suffered by the bailor
since he is the owner while in Mutuum the borrower
bears the loss.
3. As to extent of business covered
a. General One which comprises all the business of
th principal.
b. Specific One which comprise one or more specific
transactions.
4. As to authority conferred
a. Couched in general terms one which is created in
general terms (a general power of attorney)
b. Couched in specific terms one authorized only the
performance of a specified act or acts.(a special
power of Attorney is required)
5. As to nature and effect
a. Ostensible or representative one where the
agent acts in the name and representation of
the principal.
b. Simple or commission One where the agent
acts for the account of the principal but in his
own name.
 Commodatum Mutuum
Key: COPS-LOTR
1. Object
Non-consumable Consumable
2. Cause
Gratuitous May or may not be gratuitous
3. Purpose
Use or temporary possession Consumption
4. Subject Matter
Real or personal property Only personal property
5. Ownership of the thing
Retained by the bailor Passes to the debtor
6. Thing to be returned
Exact thing loaned Equal amount of the same kind and
quality
7. Who bears risk of loss
Bailor Debtor
8. When to return
In case of urgent need, even Only after the expiration of the term
before the expiration of the
term
 Loan Credit
Delivery by one party Ability of a person to
and the receipt of borrow money or
other party of a given things by virtue of the
sum of money or trust or confidence
other consumable reposed by the
thing upon an lender that he will
agreement, express pay what he
or implied, to repay promised.
the same.
 Loan Credit
1. Interest taken at the Interest is taken in
expiration of the credit advance

2. Always on a double Always on a single

name paper (two name paper (i.e.
signatures appear with promissory note with
both parties held liable no indorse-ment other
for payment) than the maker)
 Simple Loan/Mutuum Rent

1. Delivery of money or some Delivery of some non-consumable

consumable thing with a promise thing in order that the other may
to pay an equivalent of the same use it during a certain period and
kind and quality return it to the former.

2. There is a transfer of ownership There is no transfer of ownership

of the thing delivered of the thing delivered

3. Relationship between the parties Relationship is that of a landlord

is that of obligor-obligee and tenant

4. Creditor receives payment for Owner of the property rented

his loan receives compensation or price
either in money, provisions,
chattels, or labor from the occupant
thereof in return for its use
(Tolentino vs Gonzales, 50 Phil
558 1927)
 Commodatum/
Barter
Mutuum

1. Subject matter is money Subject matter is non-

or fungible things fungible, (non consumable)
things

2. In commodatum, the The thing with equivalent

bailee is bound to return the value is given in return for
identical thing borrowed what has been received
when the time has expired
or purpose served

3. Mutuum may be Onerous, actually a mutual

gratuitous and commodatum sale
is always gratuitous
DEPOSIT (Articles 1962 2009)
A contract constituted from the moment
a person receives a thing belonging to
another, with the obligation of safely
keeping it and of returning the same.

Characteristics:
1. Real Contract - contract is perfected
by the delivery of the subject matter.
2. Unilateral (gratutitous deposit)
- only the depositary has an
obligation.
3. Bilateral (onerous deposit) -
gives rise to obligations on the
part of both the depositary and
depositor.
 Deposit Mutuum
1. Purpose
Principal purpose is Principal purpose is
safekeeping or custody consumption
2. When to Return
Depositor can demand the The lender must wait until the
return of the subject matter at expiration of the period
will granted to the debtor

3. Subject Matter
Subject matter may be Subject matter is only money
movable or immovable or other fungible thing
property
4. Relationship
Relationship is that of lender Relationship is that of
(creditor) and borrower depositor and depositary.
(debtor).

5. Compensation
There can be compensation of NO compensation of things
credits. deposited with each other
(except by mutual agreement).
 Deposit Commodatum

1. Purpose is 1. Purpose is the

Safekeeping transfer of the use

2. May be gratuitous 2. Essentially and

always gratuitous

3. 3. Both movable and

Movable/corporeal immovable may be
things only in case the object
of extrajudicial
deposit
 Kinds of Deposit:
1. Judicial (Sequestration) takes place when
an attachment or seizure of property in
litigation is ordered.

2. Extra-judicial
a. Voluntary one wherein the delivery is
made by the will of the depositor or by two or
more persons each of whom believes himself
entitled to the thing deposited. (Arts 1968
1995)
b. Necessary one made in compliance
with a legal obligation, or on the occasion of
any calamity, or by travellers in hotels and
inns (Arts 1996 - 2004), or by travellers with
common carriers (Art 1734 1735).
NOTE: The chief difference between a
voluntary deposit and a necessary deposit is
that in the former, the depositor has a
complete freedom in choosing the
depositary, whereas in the latter, there is
lack of free choice in the depositor.
 Judicial Extra-judicial
1. Creation
Will of the court Will of the parties or contract
2. Purpose
Security or to insure the right of Custody and safekeeping
a party to property or to recover
in case of favorable judgment
3. Subject Matter
Movables or immovables, Movables only
but generally immovables
4. Cause
Always onerous May be compen-sated or not,
but generally gratuitous
5. When must the thing be returned
Upon order of the court or when Upon demand of depositor
litigation is ended
6. In whose behalf it is held
Person who has a right Depositor or third person
designated
GENERAL RULE: Contract of deposit is
gratuitous (Art 1965)
EXCEPTIONS:
when there is contrary stipulation
depositary is engaged in business of storing goods
property saved from destruction without knowledge of the
owner
NOTES:
Article 1966 does not embrace incorporeal property, such as rights and
actions, for it follows the person of the owner, wherever he goes.
A contract for the rent of safety deposit boxes is not an ordinary
contract of lease of things but a special kind of deposit; hence, it is not to
be strictly governed by the provisions on deposit. The relation between a
bank and its customer is that of a bailor and bailee. (CA Agro vs CA, 219
SCRA 426)
Obligations of the Depositary (Art 1972 1991):
1) To keep the thing safely (Art 1972)
Exercise over the thing deposited the same diligence as he
would exercise over his property
2) To return the thing (Art 1972)
Person to whom the thing must be returned:
a. Depositor, to his heirs and successors, or the person
who may have been designated in the contract
b. If the depositary is capacitated - he is subject to all
the obligations of a depositary whether or not the
depositor is capacitated. If the depositor is
incapacitated, the depositary must return the property to
the legal representative of the incapacitated or to the
depositor himself if he should acquire capacity.
c.If the depositor is capacitated and the
depositary is incapacitated - the latter does
not incur the obligation of a depositary but
he is liable:
i. to return the thing deposited while still in
his possession;
ii. to pay the depositor the amount which he
may have benefited himself with the thing or
its price subject to the right of any third
person who acquired the thing in good faith
(Art 1971)
Time of return:
a. Upon demand even though a specified period or time for
such return may have been fixed except when the thing is
judicially attached while in the depositarys possession or
should he have been notified of the opposition of a third
person to the return or the removal of the thing deposited.
(Art 1998)
b. If deposit gratuitous, the depositary may return the thing
deposited notwithstanding that a period has been fixed for
the deposit if justifiable reasons exists for its return.
If the deposit is for a valuable consideration, the depositary
has no right to return the thing deposited before the
expiration of the time designated even if he should suffer
inconvenience as a consequence.(Art 1989)
What to return: product, accessories, and accessions of
the thing deposited (Art 1983)
3. Not to deposit the thing with a third person
unless authorized by express stipulation (Art
1973)
>The depositor is liable for the loss of the thing
deposited under Article 1973 if:
he transfers the deposit with a third person without
authority although there is no negligence on his part
and the third person;
he deposits the thing with a third person who is
manifestly careless or unfit although authorized even
in the absence of negligence; or
the thing is lost through the negligence of his
employees whether the latter are manifestly careless
or not.
4. If the thing deposited should earn
interest (Art 1975):
a. to collect interest and the capital itself
as it fall due
b. to take steps to preserve its value and
rights corresponding to it
5. Not to commingle things deposited if so stipulated
(Art 1976)
6. Not to make use of the thing deposited unless
authorized (Art 1977)
GENERAL RULE: Deposit is for safekeeping of the
subject matter and not for use. The unauthorized use
by the depositary would make him liable for damages.
EXCEPTIONS:
When the preservation of the thing deposited requires
its use
When authorized by the depositor
NOTE: The permission to use is NOT presumed
except when such use is necessary for the
preservation of the thing deposited.
Effect if permission to use is given (Art 1978):

1. If thing deposited is non-consumable, the contract

loses the character of a deposit and acquires that of
a commodatum despite the fact that the parties may
have denominated it as a deposit, unless
safekeeping is still the principal purpose.
2. If thing deposited consists of money/consumable
things, the contract is converted into a simple loan or
mutuum unless safekeeping is still the principal
purpose in which case it is called an irregular deposit.
Example: bank deposits are irregular deposits in
nature but governed by law on loans.
7. When the thing deposited is delivered
sealed and closed
to return the thing deposited in the same
condition
to pay for damages should the seal or lock
be broken through his fault, which is
presumed unless proved otherwise
to keep the secret of the deposit when the
seal or lock is broken with or without his
fault (Art 1981)
NOTE: The depositary is authorized to
open the thingdeposited which is
closed and sealed when (Art 1982):
I. there is presumed authority (i.e.
when the key has been delivered to
him or the instructions of the
depositor cannot be done without
opening it)
II. necessity
8. To change the way of the deposit if
under the circumstances, the depositary
may reasonably presume that the
depositor would consent to the change if
he knew of the facts of the situation,
provided, that the former notifies the
depositor thereof and wait for his
decision, unless delay would cause
danger
9. To pay interest on sums converted to
personal use if the deposit consists of
money (Art 1983)
10. To be liable for loss through fortuitous
event (SUDA): (Art 1979):
if stipulated
if he uses the thing without the depositor's
permission
if he delays its return
if he allows others to use it, even though he
himself may have been authorized to use the
same
NOTES:
Fixed, savings, and current deposits of money in
banks and similar institutions shall be governed
by the provisions concerning simple loan. (Art
1980)

The general rule is that a bank can compensate

or set off the deposit in its hands for the payment
of any indebtedness to it on the part of the
depositor. In true deposit, compensation is not
allowed.
 Irregular deposit
1. The consumable thing
deposited may be demanded
at will by the depositor
2. The only benefit is that
which accrues to the
depositor
3. The irregular depositor has
a preference over other
creditors with respect to the
thing deposited
Mutuum
1. Lender is bound by the
provisions of the contract
and cannot demand
restitution until the time for
payment, as provided in the
contract, has arisen
2. Essential cause for the
transaction is the necessity
of the borrower
3. Common creditors enjoy
no preference in the
distribution of the debtors
property
 Rule when there are two or more depositors (Art 1985):
If thing deposited is divisible and depositors are not solidary:
Each depositor can demand only his proportionate share
thereto.
If obligation is solidary or if thing is not divisible: Rules on
active solidarity shall apply, i.e. each one of the solidary
depositors may do whatever may be useful to the others but
not anything which may be prejudicial to the latter, (Art. 1212)
and the depositary may return the thing to anyone of the
solidary depositors unless a demand, judicial or extrajudicial,
for its return has been made by one of them in which case,
delivery should be made to him (Art. 1214).
Return to one of depositors stipulated. The depositary is
bound to return it only to the person designated although he
has not made any demand for its return.
NOTES:
1. The depositary may retain the thing in pledge
until full payment of what may be due him by
reason of the deposit (Art 1994).
2. The depositors heir who in good faith may
have sold the thing which he did not know
was deposited, shall only be bound to return
the price he may have received or to assign
his right of action against the buyer in case
the price has not been paid him (Art 1991).
Obligations of the Depositor (Art 1992 1995):
1. To pay expenses for preservation
1. If the deposit is gratuitous, the depositor is obliged to
reimburse the depositary for expenses incurred for the
preservation of the thing deposited (Art 1992)
2. If the deposit is for valuable consideration, expenses for
preservation are borne by the depositary unless there is a
contrary stipulation
2. To pay loses incurred by the depositary due
to the character of the thing deposited

GENERAL RULE: The depositor shall reimburse

the depositary for any loss arising from the character
of the thing deposited.
EXCEPTIONS:
at the time of the deposit, the depositor was not
aware of the dangerous character of the thing
when depositor was not expected to know the
dangerous character of the thing when the
depositor notified the depository of the same the
depositary was aware of it without advice from the
depositor
Extinguishment of Voluntary Deposit (Art 1995)
Loss or destruction of the thing deposited
In case of gratuitous deposit, upon the death of
either the depositor or the depositary
Other causes, such as return of the thing, novation,
merger, expiration of the term fulfilment of the
resolutory condition, etc (Art 1231)
1. Loss or destruction of the thing deposited
2. In case of gratuitous deposit, upon the death of
either the depositor or the depositary
3. Other causes, such as return of the thing,
novation, merger, expiration of the term fulfilment
of the resolutory condition, etc (Art 1231
Necessary Deposits
Made in compliance with a legal obligation
Made on the occasion of any calamity such
as fire, storm, flood, pillage, shipwreck or
other similar events (deposito miserable)
Made by travellers in hotels and inns or by
travellers with common carrier
Necessary Deposits
1.Made in compliance with a legal
obligation
2.Made on the occasion of any
calamity such as fire, storm, flood,
pillage, shipwreck or other similar
events (deposito miserable)
3.Made by travellers in hotels and
inns or by travellers with common
carrier
Deposit by Travellers in hotels and inns:
Deposit by Travellers in hotels and inns:
The keepers of hotels or inns shall be
responsible as depositaries for the deposit of
effects made by travellers provided:
Notice was given to them or to their employees
of the effects brought by the guest; and
The guests take the precautions which said
hotel-keepers or their substitutes advised
relative to the care and vigilance of their effects.
NOTES:
Liability extends to vehicles, animals and articles which
have been introduced or placed in the annexes of the
hotel.
Liability shall EXCLUDE losses which proceed from force
majeure. The act of a thief or robber is not deemed force
majeure unless done with the use of arms or irresistible
force.
The hotel-keeper cannot free himself from the
responsibility by posting notices to the effect that he is
not liable for the articles brought by the guest. Any
stipulation to such effect shall be void.

Notice is necessary only for suing civil liability but not in

criminal liability.
GUARANTY (Articles 2047 2084)
A contract whereby a person (guarantor)
binds himself to the creditor to fulfil the
obligation of the principal debtor in
case the latter fail to do so.

Classification of Guaranty:
1. In the Broad sense:
a. Personal - the guaranty is the credit given by the
person who guarantees the fulfilment of the principal
obligation.
b. Real - the guaranty is the property, movable or
immovable.
3. As to its Origin
Conventional - agreed upon by the parties.
Legal - one imposed by virtue of a provision of a
law.
Judicial - one which is required by a court to
guarantee the eventual right of one of the
parties in a case.
4. As to Consideration
Gratuitous - the guarantor does not receive any
price or remuneration for acting as such.
Onerous - the guarantor receives valuable
consideration
4. As to the Person guaranteed
Single - one constituted solely to guarantee or
secure performance by the debtor of the principal
obligation.
Double or sub-guaranty - one constituted to
secure the fulfilment by the guarantor of a prior
guaranty.
5.As to Scope and Extent
Definite - the guaranty is limited to the principal
obligation only, or to a specific portion thereof.
Indefinite or simple - one which not only includes
the principal obligation but also all its accessories
including judicial costs
SURETYSHIP
A contract whereby a person (surety) binds
himself solidarily with the principal debtor
A relation which exists where one person
(principal) has undertaken an obligation
and another person (surety) is also under a
direct and primary obligation or other duty
to the obligee, who is entitled to but one
performance, and as between the two who
are bound, the second rather than the first
should perform (Agro Conglomerates, Inc.
vs. CA, 348 SCRA 450)
NOTES:
The reference in Article 2047 to solidary obligations does
not mean that suretyship is withdrawn from the applicable
provisions governing guaranty. A surety is almost the same
as a solidary debtor, except that he himself is a principal
debtor.
In suretyship, there is but one contract, and the surety is
bound by the same agreement which binds the principal. A
surety is usually bound with the principal by the same
instrument, executed at the same time and upon the same
consideration (Palmares vs CA, 288 SCRA 422)
It is not for the obligee to see to it that the principal debtor
pays the debt or fulfill the contract, but for the surety to see
to it that the principal debtor pays or performs (Paramount
Insurance Corp vs CA, 310 SCRA 377)
Nature of Suretys undertaking:
1. Liability is contractual and accessory but direct
NOTE: He directly, primarily and equally binds
himself with the principal as original promisor,
although he possesses no direct or personal
interest over the latters obligation, nor does he
receive any benefits therefrom. (PNB vs CA, 198
SCRA 767)
2. Liability limited by the terms of the contract.
NOTE: It cannot be extended by implication
beyond the terms of the contract (PNB vs CA, 198
SCRA 767)
3. Liability arises only if principal debtor is held
liable.
NOTES:
The creditor may sue separately or together the
principal debtor and the surety. Where there are
several sureties, the obligee may proceed against
any one of them.
In the absence of collusion, the surety is bound by a
judgment against the principal even though he was
not a party to the proceedings. The nature of its
undertaking makes it privy to all proceedings
against its principal (Finman General Assurance
Corp. vs. Salik, 188 SCRA 740)
4. Surety is not entitled to the benefit of exhaustion
NOTE: He assumes a solidary liability for the fulfilment
of the principal obligation (Towers Assurance Corp vs.
Ororama Supermart, 80 SCRA 262) as an original
promissory and debtor from the beginning.
5. Undertaking is to creditor and not to debtor.
NOTE: The surety makes no covenant or agreement
with the principal that it will fulfil the obligation
guaranteed for the benefit of the principal. Such a
promise is not implied by law either; and this is true
even where under the contract the creditor is given the
right to sue the principal, or the latter and the surety at
the same time. (Arranz vs. Manila Fidelity & Surety
Co., Inc., 101 Phil. 272)
6. Surety is not entitled to notice of principals default
NOTE: The creditor owes no duty of active diligence
to take care of the interest of the surety and the
surety is bound to take notice of the principals
default and to perform the obligation. He cannot
complain that the creditor has not notified him in the
absence of a special agreement to that effect.
(Palmares vs CA, 288 SCRA 422)
7. Prior demand by the creditor upon principal is not
required
NOTE: As soon as the principal is in default, the
surety likewise is in default.
8. Surety is not exonerated by neglect of creditor to
sue principal
Characteristics of Guaranty and Suretyship:
1. Accessory - It is indispensable condition for its
existence that there must be a principal obligation.
NOTES:
Guaranty may be constituted to guarantee the
performance of a voidable or unenforceable
contract. It may also guarantee a natural
obligation. (Art 2052)
The guarantor cannot bind himself for more than
the principal debtor and even if he does, his
liability shall be reduced to the limits of that of the
debtor.
2. Subsidiary and Conditional - takes effect only in case the
principal debtor fails in his obligation.
NOTES:
The guarantor cannot bind himself for more than the principal debtor and even if
he does, his liability shall be reduced to the limits of that of the debtor. But a
guarantor may bind himself for less than that of the principal (Art 2054)
A guaranty may be given as security for future debts, the amount of which is not
yet known; there can be no claim against the guarantor until the debt is
liquidated. A conditional obligation may also be secured. (Art 2053)
3. Unilateral - may be entered even w/o the intervention of the
principal debtor, in which case Art. 1236 and 1237 shall apply
and it gives rise only to a duty on the part of the guarantor in
relation to the creditor and not vice versa.
4. Nominate
5. Consensual
It is a contract between the guarantor/surety and creditor.
 7. Not presumed. It must be expressed and reduced in
writing.
NOTE: A power of attorney to loan money does not
authorize the agent to make the principal liable as a
surety for the payment of the debt of a third person.
(BPI vs. Coster, 47 Phil. 594)
8. Falls under the Statute of Frauds since it is a special
promise to answer for the debt, default or miscarriage of
another.
9. Strictly interpreted against the creditor and in favor of the
guarantor/surety and is not to be extended beyond its terms
or specified limits. (Magdalena Estates, Inc. vs Rodriguez, 18
SCRA 967) The rule of strictissimi juris commonly pertains to
an accommodation surety because the latter acts without
motive of pecuniary gain and hence, should be protected
against unjust pecuniary impoverishment by imposing on the
principal, duties akin to those of a fiduciary.
 10. It is a contract which requires that the
guarantor must be a person distinct form the
debtor because a person cannot be the personal
guarantor of himself.
NOTE: However, in a real guaranty, like
pledge and mortgage, a person may
guarantee his own obligation with his
personal or real properties.
 Guaranty Suretyship

1. Liability depends upon an 1. Surety assumes liability as

independent agreement to pay the regular party to the undertaking
obligation if primary debtor fails to
do so

2. Collateral under-taking 2. Surety is an original promisor

3. Guarantor is secondarily liable 3. Surety is primarily liable

1. Guarantor binds himself to pay 4. Surety undertakes to pay if the

if the principal CANNOT PAY principal DOES NOT PAY

5. Insurer of solvency of debtor 5. Insurer of the debt

6. Guarantor can avail of the 6. Surety cannot avail of the

benefit of excussion and division in benefit of excussion and division
case creditor proceeds against him
 Indorsement Guaranty

1. Primarily of transfer 1. Contract of security

2. Unless the note is promptly presented 2. Failure in either or both of

for payment at maturity and due notice
of dishonor given to the indorser within
a reasonable time he will be discharged
abso-lutely from all liability thereon,
whether he has suffered any actual
damage or not
these particulars does not
generally work as an absolute
discharge of a guarantors
liability, but his is discharged
only to the extent of the loss
which he may have suffered in
consequence thereof

3. Indorser does not warrant the 3. Guarantor warrants the

solvency. He is answerable on a strict solvency of the promisor
compliance with the law by the holder,
whether the promisor is solvent or not

4. Indorser can be sued as promisor 4. Guarantor cannot be sued as

promisor
 Guaranty Warranty
A contract by which a An undertaking that the
person is bound to title, quality, or quantity
another for the of the subject matter of
fulfilment of a promise the contract is what it
or engagement of a has been represented
third party to be, and relates to
some agreement made
ordinarily by the party
who makes the
warranty
Extent of Guarantors liability: (Art 2055)
Where the guaranty definite: It is limited in whole or in part
to the principal debt, to the exclusion of accessories.
Where guaranty indefinite or simple: It shall comprise not
only the principal obligation, but also all its accessories,
including the judicial costs, provided with respect to the
latter, that the guarantor shall only be liable for those costs
incurred after he has been judicially required to pay.

Qualifications of a guarantor: (Arts 2056-2057)

possesses integrity
capacity to bind himself
has sufficient property to answer for the obligation which he
guarantees
Extinguishment of guaranty: (RA2CE2)
Release in favor of one of the guarantors, without the consent of the others,
benefits all to the extent of the share of the guarantor to whom it has been
granted (Art 2078);
If the creditor voluntarily accepts immovable or other properties in payment of
the debt, even if he should afterwards lose the same through eviction or
conveyance of property (Art 2077);
Whenever by some act of the creditor, the guarantors even though they are
solidarily liable cannot be subrogated to the rights, mortgages and
preferences of the former (Art 2080);
For the same causes as all other obligations (Art 1231);
When the principal obligation is extinguished;
Extension granted to the debtor by the creditor without the consent of the
guarantor (Art 2079)
BOND
An undertaking that is sufficiently secured, and not cash or currency
Bondsman (Art 2082)
A surety offered in virtue of a provision of law or a judicial order. He must have the
qualifications required of a guarantor and in special laws like the Rules of Court.