Cap. 16 · Civil Code (Cap. 16)
Cap. 16 Art. 1172Rules as to appropriation where creditor obtainspaymentby causing sale of thing charged with debt.
Sub-title V
Where the creditor obtains payment by causing the sale of a thing charged with privilege or hypothec in security of his claim, and receiving the proceeds thereof, the following rules shall be observed:
(a) the appropriation shall be made to the debt secured by privilege or hypothec in preference to any other debt, even if the debtor may have a greater interest in discharging such other debt;
(b) if the thing was charged with a privileged and with a hypothecary debt, the appropriation shall be made to the privileged debt; and if it was charged with several hypothecary debts, the payment shall be applied to the debt secured by the oldest hypothec;
(c) if all things are equal, the payment is applied in discharge of each debt proportionately.
OF TENDER OF PAYMENT AND OF DEPOSIT