Q.

May a mortgagor’s liability on labor claims be transferred to the mortgagee-creditor?

A. Yes, after the mortgagee-creditor had foreclosed the assets of the mortgagor-debtor, the labor liability claims are deemed transferred to the latter.
B. No, the responsibility for the liabilities by the mortgagor towards his employees cannot be transferred via an auction sale to a purchaser who is also the mortgagee-creditor of the foreclosed assets.
C. No, the mortgage constitutes a lien on the determinative properties of the employer-debtor, because it is specially preferred credit to which worker’s monetary claims is deemed subordinate
D. “B’ and “C” only
Answer» D. “B’ and “C” only
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