Pledge and chattel mortgage are contracts by virtue of which a movable property is used to secure the
performance of an obligation. These contracts may have the same kind of thing placed as security, but
there are clear distinctions between a pledge and a chattel mortgage. In pledge, the delivery of the thing
to the creditor or to a third person is necessary for the perfection of the contract. While in chattel
mortgage, delivery of the thing is not necessary. In pledge, registration of the thing in the Registry of
Property is not necessary. While in chattel mortgage, the registration of the thing in the Chattel
Mortgage Register is necessary for its validity. In pledge, if the property is sold, the debtor is not entitled
to the excess unless it is otherwise agreed or except in the case of a legal pledge. While in chattel
mortgage, the excess over the amount due after foreclosure goes to the debtor. In pledge, the creditor
is not entitled to recover any deficiency, notwithstanding any stipulation to the contrary. While in
chattel mortgage, the creditor is entitled to recover any deficiency except if the chattel mortgage is a
security for the purchase of personal property in installments.