A borrowed money from B. As security for the payment of the loan, he executed a chattel mortgage on the building erected on his land and the machinery stored therein. For failure to pay the loan, he was sued and a judgment was rendered against him, where the building and the machinery were levied upon. Is the chattel mortgage binding upon C, the plaintiff?

Question

Quizplus · Accepted Answer

The correct answer is B because, under the Civil Code of the Philippines (specifically Article 415), buildings are generally considered immovable property, and thus cannot be the subject of a chattel mortgage. However, machinery not permanently affixed to the building can be considered movable property and thus can be subject to a chattel mortgage.

A Borrowed Money from B