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By Authority of The United States, Be It Enacted by The Philippine Commission, That
By Authority of The United States, Be It Enacted by The Philippine Commission, That
SECTION 2. All personal property shall be subject to mortgage, agreeably to the (Here insert specific description of the property mortgaged.)
provisions of this Act, and a mortgage executed in pursuance thereof shall be termed
chattel mortgage. “This mortgage is given as security for the payment to the said ______, mortgagee,
of promissory notes for the sum of ____________ pesos, with (or without, as the case
SECTION 3. Chattel mortgage defined. A chattel mortgage is a conditional sale of may be) interest thereon at the rate of ___________ per centum per annum, according
personal property as security for the payment of a debt, or the performance of some to the terms of __________, certain promissory notes, dated _________, and in the
other obligation specified therein, the condition being that the sale shall be void upon words and figures following (here insert copy of the note or notes secured).
the seller paying to the purchaser a sum of money or doing some other act named. If
the condition is performed according to its terms the mortgage and sale immediately “(If the mortgage is given for the performance of some other obligation aside from
become void, and the mortgagee is thereby divested of his title. the payment of promissory notes, describe correctly but concisely the obligation to be
performed.)
SECTION 4. Validity. A chattel mortgage shall not be valid against any person
except the mortgagor, his executors or administrators, unless the possession of the “The conditions of this obligation are such that if the mortgagor, his heirs, executors,
property is delivered to and retained by the mortgagee or unless the mortgage is or administrators shall well and truly perform the full obligation (or obligations) above
recorded in the office of the register of deeds of the province in which the mortgagor stated according to the terms thereof, then this obligation shall be null and void.
resides at the time of making the same, or, if he resides without the Philippine Islands,
in the province in which the property is situated: Provided, however, That if the
“Executed at the municipality of _________, in the Province of ________, this
property is situated in a different province from that in which the mortgagor resides,
_____ day of 19_____
the mortgage shall be recorded in the office of the register of deeds of both the province
in which the mortgagor resides and that in which the property is situated, and for the
purposes of this Act the city of Manila shall be deemed to be a province. ____________________
SECTION 5. Form. A chattel mortgage shall be deemed to be sufficient when made (Signature of mortgagor.)
substantially in accordance with the following form, and shall be signed by the person
or persons executing the same, in the presence of two witnesses, who shall sign the “In the presence of
mortgage as witnesses to the execution thereof, and each mortgagor and mortgagee,
or, in the absence of the mortgagee, his agent or attorney, shall make and subscribe an “_________________
affidavit in substance as hereinafter set forth, which affidavit, signed by the parties to
the mortgage as above stated, and the certificate of the oath signed by the authority
administering the same, shall be appended to such mortgage and recorded therewith. “_________________
SECTION 15. d) sign and issue the certificate of sale, subject to the approval of
the Executive Judge, or in his absence, the Vice-Executive Judge;
SECTION 16. This Act shall take effect on August first, nineteen hundred and six. and
e) after the certificate of sale has been issued to the highest bidder,
keep the complete records, while awaiting any redemption within a
period of one (1) year from date of registration of the certificate of
Republic of the Philippines sale with the Register of Deeds concerned, after which the records
SUPREME COURT shall be archived.
Manila
Where the application concerns the extrajudicial foreclosure of mortgages
EN BANC of real estates and/or chattels in different locations covering one
indebtedness, only one filing fee corresponding to such indebtedness shall
A.M. No. 99-10-05-0 December 14, 1999 be collected. The collecting Clerk of Court shall, apart from the official
(Amended by A.M. 99-10-05-0, August 7, 2001) receipt of the fees, issue a certificate of payment indicating the amount of
indebtedness, the filing fees collected, the mortgages sought to be
PROCEDURE IN EXTRA-JUDICIAL FORECLOSURE OF MORTGAGE foreclosed, the real estates and/or chattels mortgaged and their respective
locations, which certificate shall serve the purpose of having the application
In line with the responsibility of an Executive Judge under Administrative Order No. docketed with the Clerks of Court of the places where other properties are
6, dated June 30, 1975, for the management of courts within his administrative area, located and of allowing the extrajudicial foreclosures to proceed thereat.
included in which is the task of supervising directly the work of the Clerk of Court,
who is also the Ex Officio Sheriff, and his staff, and the issuance of commissions to 3. The notices of auction sale in extrajudicial foreclosure for publication by
notaries public and enforcement of their duties under the law, the following the sheriff or by a notary public shall be published in a newspaper of
procedures are hereby prescribed in extrajudicial foreclosure of mortgages: general circulation pursuant to Section 1, Presidential Decree No. 1709,
dated January 26, 1977, and non-compliance therewith shall constitute a
1. All applications for extra-judicial foreclosure of mortgage whether under violation of Section 6 thereof.
the direction of the sheriff or a notary public, pursuant to Act 3135, as
amended by Act 4118, and Act 1508, as amended, shall be filed with the 4. The Executive Judge shall, with the assistance of the Clerk of Court,
Executive Judge, through the Clerk of Court who is also the Ex- raffle application for extrajudicial foreclosure of mortgage under the
Officio Sheriff. direction of the sheriff among all sheriffs, including those assigned to the
Office of the Clerk of Court and Sheriffs IV assigned in the branches.
2. Upon receipt of an application for extra-judicial foreclosure of mortgage,
it shall be the duty of the Clerk of Court to: 5. No auction sale shall be held unless there are at least two (2) participating
bidders, otherwise the sale shall be postponed to another date. If on the new
date set for the sale there shall not be at least two bidders, the sale shall then (2) Cancel the sale, should the vendee's failure to pay cover two or more
proceed. The names of the bidders shall be reported by the sheriff or the installments;
notary public who conducted the sale to the Clerk of Court before the
issuance of the certificate of sale. (3) Foreclose the chattel mortgage on the thing sold, if one has been
constituted, should the vendee's failure to pay cover two or more
This Resolution amends or modifies accordingly Administrative Order No. 3 issued installments. In this case, he shall have no further action against the
by then Chief Justice Enrique M. Fernando on 19 October 1984 and Administrative purchaser to recover any unpaid balance of the price. Any agreement
Circular No. 3-98 issued by the Chief Justice Andres R. Narvasa on 5 February 1998. to the contrary shall be void. (1454-A-a)
The Court Administrator may issue the necessary guidelines for the effective
enforcement of this Resolution.
The Clerk of Court shall cause the publication of this Resolution in a newspaper of
general circulation not later than 27 December 1999 and furnish copies thereof to the
Integrated Bar of the Philippines.
This Resolution shall take effect on the fifteenth day of January year 2000.
Chapter Seven
CHATTEL MORTGAGE
Art. 319. Removal, sale or pledge of mortgaged property. — The penalty or arresto
mayor or a fine amounting to twice the value of the property shall be imposed upon:
1. Any person who shall knowingly remove any personal property mortgaged
under the Chattel Mortgage Law to any province or city other than the one in
which it was located at the time of the execution of the mortgage, without the
written consent of the mortgagee, or his executors, administrators or
assigns.chanrobles virtual law library
2. Any mortgagor who shall sell or pledge personal property already pledged, or
any part thereof, under the terms of the Chattel Mortgage Law, without the
consent of the mortgagee written on the back of the mortgage and noted on the
record hereof in the office of the Register of Deeds of the province where such
property is located.ch
(1) Exact fulfillment of the obligation, should the vendee fail to pay;