FINAL EXAM CREDIT TRANSACTIONS

Answer each question BRIEFLY, CONCISELY and LOGICALLY.

B obtained a loan from XYZ Bank in the amount of P 2,500,000.00, payable in three years. To secure the payment of the said loan, B mortgaged his parcel of land containing an area of 500 square meters. After three years, B failed to pay his obligation and thus, XYZ Bank initiated foreclosure proceedings, including the house which was eventually constructed therein to serve as B and his wifes permanent abode. B opposed the foreclosure proceedings and argued that the house therein should not be included in the foreclosure proceedings because: (a) only the parcel of land was mortgaged; and (b) the house is a family home, which, under the law, is exempt from execution or forced sale. Is Bs contention correct? Why or why not? (10 points)

II.

Distinguish Equity of Redemption from Right of Redemption. (5 points)

III.

A mortgaged his property to B to secure