Question & AnswerQ&A (Act No. 2884)
The primary purpose of Act No. 2884 is to amend Section 714 of Act No. 190 (Code of Procedure in Civil Actions and Special Proceedings) to authorize executors and administrators, under certain conditions, to mortgage or otherwise encumber the realty of the estate to pay debts and charges.
Executors or administrators can mortgage or encumber real estate when the personal estate is insufficient to pay debts and charges without harming the interests of those involved, and when the testator has not made sufficient provision for such payments.
The court must be convinced that the sale, mortgage, or encumbrance of real estate would be beneficial to the interested persons and will not defeat any devise of land.
The consent and approbation in writing must come from the heirs, devisees, and legatees residing in the Philippine Islands.
Yes, if the mortgaging or encumbrance affects a devised land, the assent of the devisee is required.
Yes, but only if the personal estate is not sufficient to pay debts and charges without injuring the business or interests of those involved.
Act No. 2884 amends Section 714 of the Code of Procedure in Civil Actions and Special Proceedings (Act No. 190).
'Realty' refers to real property or land and anything permanently attached to it, while 'personalty' refers to personal property such as movable goods and estate assets other than land.
Act No. 2884 took effect on its approval on February 24, 1920.
Because liquidating the personal estate assets might diminish the value or operation of the estate’s business or cause financial harm to the beneficiaries and interested parties.