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    Chattel Mortgage

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    Ming
    A chattel mortgage is a security interest over personal property to guarantee repayment of a debt. Key points: 1. Act 1508 governs chattel mortgages in the Philippines. All personal property can be mortgaged under this law. 2. For validity against third parties, the mortgage must be registered in the Chattel Mortgage Register along with an affidavit of good faith. If the property is a vehicle, it must also be registered at the Motor Vehicles Office. 3. If the mortgagor defaults, the mortgagee can sell the property at a public auction after 30 days, providing at least 10 days notice in two public places.

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    Chattel Mortgage

    Uploaded by

    Ming
    464 views9 pages
    A chattel mortgage is a security interest over personal property to guarantee repayment of a debt. Key points: 1. Act 1508 governs chattel mortgages in the Philippines. All personal property can be mortgaged under this law. 2. For validity against third parties, the mortgage must be registered in the Chattel Mortgage Register along with an affidavit of good faith. If the property is a vehicle, it must also be registered at the Motor Vehicles Office. 3. If the mortgagor defaults, the mortgagee can sell the property at a public auction after 30 days, providing at least 10 days notice in two public places.

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    credit transaction

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    A chattel mortgage is a security interest over personal property to guarantee repayment of a debt. Key points: 1. Act 1508 governs chattel mortgages in the Philippines. All personal property can be mortgaged under this law. 2. For validity against third parties, the mortgage must be registered in the Chattel Mortgage Register along with an affidavit of good faith. If the property is a vehicle, it must also be registered at the Motor Vehicles Office. 3. If the mortgagor defaults, the mortgagee can sell the property at a public auction after 30 days, providing at least 10 days notice in two public places.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    464 views9 pages

    Chattel Mortgage

    Uploaded by

    Ming
    A chattel mortgage is a security interest over personal property to guarantee repayment of a debt. Key points: 1. Act 1508 governs chattel mortgages in the Philippines. All personal property can be mortgaged under this law. 2. For validity against third parties, the mortgage must be registered in the Chattel Mortgage Register along with an affidavit of good faith. If the property is a vehicle, it must also be registered at the Motor Vehicles Office. 3. If the mortgagor defaults, the mortgagee can sell the property at a public auction after 30 days, providing at least 10 days notice in two public places.

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    CHATTEL MORTGAGE

    By

    CRAMWELL T. BANOGON
    LLB-II (Credit Transactions)
    Applicable Laws
    1. Act No. 1508 (Chattel Mortgage Law)
    2. Article 2140 of the Civil Code of the
    Philippines
    3. R.A. No. 4136 (Revised Motor Vehicles
    Law)
    Definition

    A chattel mortgage is an accessory contract


    by virtue of which personal property is
    recorded in the Chattel Mortgage Register
    as a security for the performance of an
    obligation.
    Scope

    All personal property shall be subject to


    mortgage, agreeably to the provision of the
    this Act, and a mortgage executed in
    pursuance thereof shall be termed chattel
    mortgage. (Sec 2., Act No. 1508)
    Requisites

    1. Validity between the Parties:


    - the personal property must be
    RECORDED or REGISTERED in the
    Chattel Mortgage Register (Art. 2140,
    NCC)
    Requisites
    2. Validity as against Third Persons:
    - the registration must be accompanied by an
    affidavit of good faith (Sec. 4 & 5, Act 1508).
    - a mortgage constituted on a car, in order to
    affect third persons should also be registered in
    the Motor Vehicles Office (Sec. 5(e), Revised
    Motor Vehicle Law)
    Requisites
    2. Validity as against Third Persons:
    - the mortgage must be registered in two
    registers when the mortgagor resides in one
    province, but the property is situated in
    another province; otherwise, the chattel
    mortgage isVOID.
    Failure of Mortgagee to Discharge
    the Mortgage
    - If the mortgagee, assign, administrator, executor, or either of
    them, after performance of the condition before or after the
    breach thereof, or after tender of the performance of the
    condition, at or after the time fixed for the performance, does
    not within ten days after being requested thereto by any person
    entitled to redeem, discharge the mortgage in the manner
    provided by law, the person entitled to redeem may recover of
    the person whose duty it is to discharge the same twenty pesos
    for his neglect and all damages occasioned thereby in an action
    in any court having jurisdiction of the subject-matter thereof
    (Sec. 8, Act No. 1508).
    Sale of Property at
    Public Auction
    - The mortgagee, his executor, administrator, or assign, may, after
    thirty days from the time of condition broken, cause the mortgaged
    property, or any part thereof, to be sold at public auction by a public
    officer at a public place in the municipality where the mortgagor
    resides, or where the property is situated, provided at least ten days'
    notice of the time, place, and purpose of such sale has been posted at
    two or more public places in such municipality, and the mortgagee,
    his executor, administrator, or assign, shall notify the mortgagor or
    person holding under him and the persons holding subsequent
    mortgages of the time and place of sale, either by notice in writing
    directed to him or left at his abode, if within the municipality, or sent
    by mail if he does not reside in such municipality, at least ten days
    previous to the sale. (Sec. 14, Act No. 1508)

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