Ar cle 390 Where a collateral is destructed, damaged, or lost, or is expropriated during the secured period, the person en tled to a security interest has priority to be paid from the insurance payment, compensa on, or indemnity received on the collateral. Where the collateral is destructed, damaged, or lost, or is expropriated prior to the due date of performance of the secured claim, the insurance payment, compensa on, or indemnity may also be placed in escrow. Ar cle 391 Where a third person provides security and the creditor allows the debtor to transfer all or part of the secured obliga ons without the third person’s wri en consent, the security provider is no longer liable for securing the part of the obliga ons so transferred. Ar cle 392 Where a claim is secured by both a collateral and a surety, and the debtor fails to perform his obliga ons due or any event upon which a security interest is to be enforced as agreed upon by the par es occurs, the creditor shall enforce the claim in accordance with the agreement. Where there is no agreement or the agreement is unclear, if the collateral is provided by the debtor, the creditor shall rst enforce the claim against the collateral, and if the collateral is provided by a third person, the creditor may elect to enforce the claim against the collateral or request the surety to assume liability. A er the third person who provides security has assumed such liability, he has the right of indemni ca on against the debtor. Ar cle 393 A security interest is ex nguished under any of the following circumstances: (1) the claim under the principal contract is ex nguished; (2) the security interest is enforced; (3) the creditor waives his security interest; or (4) there exists any other circumstance in which security interest is ex nguished as provided by law. Chapter XVII Mortgage Sec on 1 General Mortgage Ar cle 394 Where a debtor or a third person, in order to secure the performance of an obliga on, mortgages his property to the creditor without relinquishing the possession of the property, the creditor has priority to be paid from the collateral if the debtor fails to perform his obliga on due or an event upon the occurrence of which the security interest in the collateral is to be enforced as agreed by the par es occurs. The debtor or the third person as speci ed in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the collateral mortgaged to secure the claim is the mortgaged property. Ar cle 395 The following property, which the debtor or a third person is en tled to dispose of, may be mortgaged: (1) buildings and other things a ached to the land; (2) the right to use a lot of land for construc on purposes; (3) the right to use the sea areas; (4) produc on equipment, raw materials, work in process, and nished products; (5) buildings, vessels, and aircra under construc on; (6) vehicles for transport; and (7) other property not prohibited by laws or administra ve regula ons from being mortgaged. A mortgagor may mortgage the property listed in the preceding paragraph concurrently. Ar cle 396 An enterprise, an individual-run industrial and commercial household, or an agricultural produc on operator may mortgage their produc on equipment, raw materials, work in process, and nished products that they currently own or therea er acquired, and if the debtor fails to perform his obliga ons due or any event upon which a security interest in the mortgaged property is to be enforced as agreed by the par es occurs, the creditor has priority to be paid from the movable property determined at the me when the mortgaged property is ascertained. ti ti fi ti ti ti fi ti ft ti ti fi ti ti ti fi ti tt ti ti ti ti ft fi ti ti ft tt ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti 43