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Article 2102

RA 386 · Civil Code of the PhilippinesKey provision

ELI5— what this means for you

If the pledge earns or produces fruits, income, dividends, or interests, the creditor shall compensate what he receives with those which are owing him.

Official text — RA 386

If the pledge earns or produces fruits, income, dividends, or interests, the creditor shall compensate what he receives with those which are owing him; but if none are owing him, or insofar as the amount may exceed that which is due, he shall apply it to the principal. Unless there is a stipulation to the contrary, the pledge shall extend to the interest and earnings of the right pledged.

In case of a pledge of animals, their offspring shall pertain to the pledgor or owner of animals pledged, but shall be subject to the pledge, if there is no stipulation to the contrary. (1868a)

Source: lawphil.net (RA 386 as amended)

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