Credit title
A credit certificate, also called a security certificate, is that «document necessary to exercise the literal and autonomous right expressed therein». From the above definition, it is understood that the credit instruments are made up of two main parts: the value they contain and the title, right or material support that contains it, resulting from this combination an inseparable unit. In a restricted sense, it is that "document on a private right whose exercise and whose transmission are conditioned on the possession of the document", a conception according to which the document is indispensable both to transmit and to exercise the right incorporated therein (STS 27- 12-1985)
The patrimonial obligation incorporated to the credit titles. The title of credit is a piece of paper, which incorporates an obligation of an economic nature, or in other words, represents a value of patrimonial order. It is clear that the intention was to give body to the debt, to materialize it, to avoid the inconvenience of the invisibility of the credits and the difficulty of verifying it when trying to collect.
Elements
Literality: This characteristic refers to the fact that the right that the document represents must be exercised by the beneficiary as it is written in the title, literally, and consequently the obligor must comply in the terms written in the document.
Limits to literality: The beneficiary cannot collect the Document before the expiration stated in the title (127 LGTOC). You cannot collect, an amount higher than the consigned one (167) When only part of the consigned amount is paid, you will retain the document, but the amount will be reduced verbatim (17 and 130) because there is no more debt than what appears inserted in the text.
Incorporation: It means that the right that the document represents is incorporated into it, that is, closely linked to the title, without there being a separate right of the document, in such a way that in order to exercise the right, it is necessary to be in possession of the Title.
Incorporation rules: The holder of the title has the obligation to exhibit it to exercise the right that is set forth in it (17 LGTOC) b) Payment must be made against delivery (129) c) The claim of the represented goods, can only be made by claiming the title itself (19). d) The kidnapping on the right or the goods consigned in the title does not have any effects if it does not include the kidnapping of the title itself (20) e) The transmission of the title implies the transfer of the main right, the interests, fallen dividends, guarantees and others accessory rights (18).
Legitimation: It has the person who can collect the title, it is the owner. If the document is to the bearer, it will be the holder, unless it is held in bad faith. The document is transmitted by endorsement.
The active legitimation consists of the property or quality that the credit title has to attribute to its owner, that is to whoever owns it legally, the faculty to demand from the obligor in the title the payment of the benefit that is consigned therein.
Only the owner of the document can "legitimize" himself as the owner of the incorporated right and demand compliance with the relative obligation.
In its passive aspect, the legitimation consists in the fact that the debtor bound in the credit title fulfills his obligation and therefore releases himself from it, paying whoever appears to be the owner of the document.
The debtor cannot know, if the title is circulating, who his creditor is, until the moment that he appears to collect, actively legitimizing himself with the possession of the document.
The debtor is in turn legitimized in the passive aspect, by paying the person who appears to be actively legitimized.
Autonomy: Autonomy should be understood that the right will be exercised independently of any condition that tries to modify or limit it, in such a way that the obligor must fulfill his obligation without presenting conditions to do so.
Circulation: This characteristic of the credits is the easiest to understand, since it consists in that this kind of documents circulate being transmitted from one person to another by means of the endorsement or by material delivery of the document only if it is a document "to the bearer "
