Part 5

A C C EP TA B LE
PAY M EN TS
CASH

Philippine currency or
foreign currencies
maybe accepted from
the debtor or from a
third person in favor of
the debtor.
CASH
If its a foreign currency, it
is imperative to determine
the authenticity,
genuineness and legal
tender qualities of the
currency as well as the
acceptable prevailing
exchange rate between the
CASH

The exchange rate to

use must always be
the prevailing buying
rate of the banks as of
the date of conversion.
CH ECK
Checks owned by the
debtor and/or the co-
debtor; or, for that matter
by other person offered in
payment for the account of
the debtor that does not
affect or prejudice your
money claim may be
PAYM EN T IN KIN D O R SERVICE

In collecting payment for

delinquent or bad
accounts receivable the
probability of being
offered payment in kind
or service is great of you
consider that these
PAYM EN T IN KIN D O R SERVICE

In case of payment of
this nature it is a
business decision
based on pragmatism
whether to accept or
not to accept such kind
of payments.
The m atters to take into consideration
are the follow ing:
a. Is the debtor really so distressed
that the cash payment is not
really possible?
b. Pricing of the thing or service;
c. Saleability or need of the thing
or service
d. Tax Consideration
e. Possibility of an expeditious turn
around from the payment to
Paym ent from Surety or
G uaranty Paym ent ofbond

Claim for performance or

payment from surety or
guaranty payment bond must
always be preceded by a
formal notice of claim against
the surety or bonding
company within the period
explicitly provided in the bond.
Joint and SeveralO bligor
(D ebtor)
An experienced creditor always
include the joint and several
debtor(s) in all the notices as
well as in any material
alteration of credit obligation
to avoid and prevent unwitting
novation of the main credit
obligation.
W ays to Fortify or Secure
Credit
Joint and Several, (solidary
obligation) Jointly and severally
literally means that a person who
agrees to be bound under such a mode,
answer personally and directly for the
obligations created under the contract.

-It also means in solidium or one and

the same in the obligation created.
W ays to Fortify or Secure
Credit
Real Estate Mortgage - This refers
to the conveyance of a real
property as a security for the
payment of money or the
performance of some other act,
condition to become null and void
upon payment or performance of
the obligation created.
W ays to Fortify or Secure
Credit
Pari-passu Agreement - This is
used by creditors who, marshalling
assets are entitled to receive out
of the same fund or asset without
any precedence of each other
except as to the direct proportion
of their financial exposures in the
credit granted.
W ays to Fortify or Secure
Credit
Chattel Mortgage - A conditional
sale of personal property as
security for the payment of a
debt or the performance of some
other obligation specified.
Pledge - A contract whereby a
personal property is delivered to
the creditor or a third person as
a security for the performance of
W ays to Fortify or Secure
Credit
Surety - Guarantees the
performance by another party
called the principal or obligor of
an obligation or undertaking in
favor of third party called the
obligee.
Guaranty - Binds himself to the
creditor to fulfill the obligations
W ays to Fortify or Secure
Credit
Assignment - It has for its
subject matter the credit or a
right assigned; for
consideration, the price paid
for the right; and for the
consent, the agreement
between the parties regarding
the credit or right to be
W ays to Fortify or Secure
Credit
Escrow Arrangement An
agreement whereby a deed or a
contract, which may be coupled by
monetary consideration, is
delivered to a mutually acceptable
stranger or third party with an
obligation for the latter to deliver
unto the party in whose favor the
deed or agreement is made, upon
the occurrence or performance of
W ays to Fortify or Secure
Credit
Letter of Credit (LC) - Is basically a
request directing someone to pay
or give credit to, a third party and
promising to repay or guarantee
the same.