Text of the provision
Art. 2112. The creditor to whom the credit has not been satisfied in due time, may proceed before a Notary Public to the sale of the thing pledged. This sale shall be made at a public auction, and with notification to the debtor and the owner of the thing pledged in a proper case, stating the amount for which the public sale is to be held. If at the first auction the thing is not sold, a second one with the same formalities shall be held; and if at the second auction there is no sale either, the creditor may appropriate the thing pledged. In this case he shall be obliged to give an acquittance for his entire claim.
(1872a)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
On non-payment, the creditor may have the thing sold at public auction before a notary public, with notice to the debtor/owner; if unsold after two auctions, the creditor may appropriate it, giving full acquittance. The pledge-foreclosure mechanism.
Related provisions
- Article 2111 — Abandonment of the Pledge.
- Article 2113 — Bidding at the Auction.
Cases citing this article
- Armand O. Raquel-Santos, et al. vs. Court of Appeals, et al, G.R. No. 174986, July 7, 2009 — read the decision on LawPhil →
- Lim Tay vs. Court of Appeals, et al, G.R. No. 126891, August 5, 1998 — read the decision on LawPhil →
- United Planters Sugar Milling Co., Inc. (UPSUMCO) vs. The Honorable Court of Appeals, et al, G.R. No. 126890, April 2, 2009 — read the decision on LawPhil →
- Insular Life Assurance Company, Ltd., et. al. vs. Robert Young, et. al, G.R. No. 140964, January 16, 2002 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.