Text of the provision
Art. 2247. If there are two or more credits with respect to the same specific movable property, they shall be satisfied pro rata, after the payment of duties, taxes and fees due the State or any subdivision thereof.
(1926a)
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
If two or more credits bear on the same specific movable, they are satisfied pro rata after taxes and duties on it are fully paid.
When a single piece of movable property is the target of more than one preferred credit, the article resolves the competition in two steps: duties, taxes, and fees owed to the government are paid first, and only then is what remains divided among the private creditors in proportion to each one's credit, rather than by whoever filed or perfected a claim earliest. This pro rata approach avoids a race between creditors and instead spreads the available value fairly across all of them.
Questions about this provision
- Two of us both have preferred claims on the same specific piece of equipment — do we each get full payment or do we split what is recovered from it?
- Two creditors both have preferred claims on the same movable - how is that property divided between us?
Related provisions
- Article 2246 — Satisfying Preferred Credits on Specific Movables.
- Article 2248 — Satisfying Preferred Credits on Specific Immovables.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.