CHAPTER IV

EXTINCTION OF SURETYSHIP

 

Section 698.- The surety is discharged as soon as the obligation of the debtor is extinguished by any cause whatsoever.

 

Section 699.- The suretyship for a series of transactions without limit of time in favour of the creditor can be terminated by the surety for the future by giving notice to the creditor to that effect.

In such case, the surety is not liable for transactions done by the debtor after the notice has reached the creditor.

 

Section 700.- If suretyship has been given for an obligation which is to be performed at a definite time, and the creditor grants to the debtor an extension of time, the surety is discharged.

The surety is not discharged if he agreed to the extension of time.

 

Section 701.- The surety may tender performance of the obligation to the creditor from the time when performance is due.

If the creditor refuses to accept performance, the surety is discharged.

 

TITLE XII

MORTGAGE

CHAPTER I

GENERAL PROVISIONS

 

Section 702.- A mortgage is a contract whereby a person, called the mortgagor, assigns a property to another person, called the mortgagee, as security for the performance of an obligation, without delivering the property to the mortgagee.

The mortgagee is entitled to be paid out of the mortgaged property in preference to ordinary creditors regardless as to whether or not the ownership of the property has been transferred to a third person.

 

Section 703.- Immovable of any kind can be mortgaged.

The following movables can also be mortgaged provided they are registered according to law :

                (1) Ships or vessels of five tons and over ;

                (2) Floating houses ;

                (3) Beasts of burden ;

                (4) Any other movables with regard to which the law may provide registration for that purpose.

 

Section 704.- A contract of mortgage must specify the property mortgaged.