QUESTION 9
Which of the following is not a characteristic of a notarial bond?
A.
It is registered against specific corporeal immovable property of the mortgagor.
B.
It is registered as security for the payment of the principal debt of the mortgagee.
C.
Once registered, it grants the mortgagee a limited real right to the object of the security.
B. It is registered as security for the payment of the principal debt of the mortgagee.
The correct answer is A. It is not a characteristic of a notarial bond to be registered against specific corporeal immovable property of the mortgagor. Notarial bonds are registered as security for the payment of the principal debt of the mortgagee (option B). Once registered, a notarial bond grants the mortgagee a limited real right to the object of the security (option C).
To determine which of the following characteristics is not associated with a notarial bond, we need to understand what a notarial bond is and its common features.
A notarial bond is a type of legal document commonly used to secure a debt and provide assurance to the creditor (mortgagee) that the debtor (mortgagor) will fulfill their obligations. It is typically created by a notary public and registered in a public registry. Here are the common characteristics of a notarial bond:
A. It is registered against specific corporeal immovable property of the mortgagor: A notarial bond is often registered against tangible property owned by the mortgagor, such as land or buildings, to serve as collateral for the debt. The property is identified and linked to the bond, establishing a solid connection between the mortgage and the specific asset.
B. It is registered as security for the payment of the principal debt of the mortgagee: The main purpose of a notarial bond is to provide security for the mortgagee, ensuring that the debtor repays the principal debt. By registering the bond, it creates a legally enforceable claim on the mortgaged property, allowing the mortgagee to recover the debt if the debtor fails to fulfill their obligations.
C. Once registered, it grants the mortgagee a limited real right to the object of the security: A notarial bond establishes a limited real right for the mortgagee over the mortgaged property. This means that the mortgagee has certain rights and protections with regards to the property, such as the ability to sell it to recover the debt if necessary. However, the mortgagee's rights are limited to the extent of the debt owed.
Now, let's identify which of the given characteristics is not associated with a notarial bond:
The correct answer is A. It is registered against specific corporeal immovable property of the mortgagor.
This is an incorrect characteristic because a notarial bond does not necessarily have to be registered against specific corporeal immovable property. It can be registered against movable property as well, such as vehicles, machinery, or inventory. The key aspect is that the bond serves as security for the debt, regardless of whether the property is immovable or movable.
Therefore, option A is the characteristic that is not associated with a notarial bond.