Section 225.- If the debtor is bound to make compensation for the value of an object, which has perished during the default, or which cannot be delivered for a reason which has arisen during the default, the creditor may demand interest, on the amount to be paid as compensation, from the time which serves as the basis for the estimate of the value. The same rule applies if the debtor is bound to make compensation for the diminution in value of an object which has deteriorated during the default.

 

PART II

SUBROGATION

 

Section 226.- A person, who is subrogated to the rights of a creditor, is entitled to exercise, in his own name, all the rights which the creditor had in respect of the obligation including any security of it.

By real subrogation, a property is substituted for another property in the same juristic position as the previous one.

 

Section 227.- When a creditor has received, as compensation for damage, the full value of the thing or right which is the subject of the obligation, the debtor is, by operation of law, subrogated into the position of the creditor with regard to such a thing or right.

 

Section 228.- If, in consequence of the circumstance which makes the performance impossible, the debtor acquires a substitute or a claim for compensation for the object owed, the creditor may demand delivery of the substitute received or may himself claim for compensation.

If the creditor has a claim for compensation on account of non-performance, the compensation to be made to him is diminished, if he exercises the right specified in the foregoing paragraph, by the value of the substitute received or of the claim for compensation.

 

Section 229.- Subrogation takes place by operation of law, and ensues to the benefits of the following persons :

                (1) The person, who being himself a creditor, pays another creditor who has priority to him owing to such other creditor having a preferential right, pledge or mortgage ;

                (2) The person who, when he acquires an immovable property, uses the purchase price in paying off the persons who have mortgages thereon ;

                (3) The person, who being bound with other or for others to pay a debt and was interested in paying the same, has paid it.

 

Section 230.- If the creditor levies compulsory execution upon an object belonging to the debtor, any person who through the execution, incurs danger of losing a right in the object, is entitled to satisfy the creditor. The same right belongs to the possessor of a thing if he incurs danger of losing possession through the execution.

If a third person satisfies the creditor he is subrogated of the claim of the latter. Such claim may not be enforced to the detriment of the creditor.