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What constitutes antichresis – In a contract of antichresis, “the creditor acquires the right to receive the fruits[1] of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.[2]

Amount of principal and interest in writing – The contract of antichresis must specify in writing the amount of the principal and the interest; otherwise, it is void.[3] To exempt himself from these obligations, the creditor may always compel the debtor to enter again upon the enjoyment of the property, unless otherwise stipulated.[4]

Creditor not to acquire ownership for non-payment of debt within period – The creditor does not acquire the ownership of the real estate if the debtor fails to pay his debt within the period agreed upon.[5] Any contrary stipulation is void.[6]

[1] The actual market value of the fruits at the time when the same was applied to the interest and principal is the measure of such application (Article 2133, Ibid.).

[2] CIVIL CODE. Article 2132. The last paragraph of article 2085, and articles 2089 to 2091 are applicable to a contract of antichresis (Article 2139, Ibid.). “The contracting parties may stipulate that the interest upon the debt be compensated with the fruits of the property which is the object of the antichresis, provided that if the value of the fruits should exceed the amount of interest allowed by the laws against usury, the excess shall be applied to the principal” (Article 2138, Ibid.).

[3] Ibid. Paragraph 1, Article 2134.

[4] Ibid. Paragraph 2, Article 2134.

[5] Ibid. Paragraph 1, Article 2137.

[6] Ibid. Paragraph 2, Article 2137. The creditor may initiate a petition for the payment of the debt or the sale of the real property (Article 2137, Ibid.). “In this case, the Rules of Court on the foreclosure of mortgages shall apply.” (Ibid.)

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