Ar cle 571 A subject ma er or the proceeds obtained from auc on or sale of the subject ma er is placed in escrow where the debtor delivers the subject ma er or proceeds thereof to the escrow agency in accordance with law. Where a subject ma er or its proceeds has been placed in escrow, the debtor is deemed to have delivered the subject ma er to such extent. Ar cle 572 A er a subject ma er is placed in escrow, the debtor shall promptly no fy the creditor or the creditor’s heir, estate administrator, guardian, or custodian for his property. Ar cle 573 A er a subject ma er is placed in escrow, the risk of destruc on, damage, or loss thereof shall be assumed by the creditor. During the period the subject ma er is placed in escrow, the accrued proceeds of the subject ma er shall belong to the creditor. The expenses thus incurred shall be borne by the creditor. Ar cle 574 The creditor may collect the subject ma er placed in escrow at any me, except that where the creditor owes due obliga on to the debtor, the escrow agency shall reject the creditor’s request for collec ng it before the creditor performs such obliga on or providing security therefor. The creditor’s right to collect the subject ma er placed in escrow is ex nguished if such right is not exercised within ve years from the date the subject ma er is delivered to the escrow agency, and such subject ma er shall be escheated to the State a er the escrow agency’s expenses are deducted. However, where a creditor fails to perform his due obliga on to the debtor, or where the creditor waives his right to collect the subject ma er placed in escrow in wri ng to the escrow agency, the debtor has the right to take back the subject ma er a er paying the escrow agency’s expenses. Ar cle 575 Where a creditor exempts part or all of the debtor’s obliga ons, the claims and obliga ons shall be terminated in part or in whole, unless the debtor objects within a reasonable period of me. Ar cle 576 Where a claim and an obliga on are merged to be held by the same person, the claim and obliga on shall be terminated, unless it is detrimental to the interests of a third person. Chapter VIII Default Liability Ar cle 577 Where a party fails to perform his contractual obliga on or his performance does not conform to the agreement, he shall bear default liability such as con nuing to perform his obliga ons, taking remedial measures, or compensa ng for losses. Ar cle 578 Where a party explicitly expresses or indicates by his act that he will not perform his contractual obliga on, the other party may request the former party to bear default liability before expira on of the me period of performance. Ar cle 579 Where a party fails to pay the price, remunera on, rent, or interests, or fails to perform another pecuniary obliga on, the other party may request for such payment or performance. Ar cle 580 Where a party fails to perform a non-pecuniary obliga on or his performance does not conform to the agreement, the other party may request for such performance unless: (1) the performance is impossible either de jure or de facto; (2) the object of the obliga on is not suitable for a compulsory performance or the expenses for the performance are too high; or (3) the creditor fails to request for performance within a reasonable period of me. ti tt ti ti tt ti ti ti ti ti ti ti ti ti ti ti tt ti ti ti tt tt tt tt ti ti tt ft ti ti tt tt ti tt ti ti tt tt ti tt tt ft ft ft fi ti ti tt tt ti ti ti ti ti ti ti ti ti 64 ti ti (4) any other circumstance as provided by law. Where the subject ma er is not suitable for being placed in escrew or the expenses therefor are too high, the debtor may sell the subject ma er through auc on or sale and place the proceeds thus obtained in escrow in accordance with law.