Case No.

7
Metropolitan Water District vs. Aurelio Reyes
February 26, 1943
Ponente: Ozaeta, J.
Facts:
MW obta!ne" a #oney $u"%#ent a%a!nst C!r!aca C&an. 'y (!rtue o) a *r!t o)
e+ecut!on, t&e s&er!, attac&e" t&e !nterest o) C&an !n t&e -an" ./C/ No. 471601. /&e
attac&#ent *as annotate" at t&e bac2 o) t&e t!t-e. MW *as t&e &!%&est b!""er
*&en t&e -an" *as so-" !n a 3ub-!c auct!on. /&e sa-e 3rocee"e" "es3!te t&!r" 3arty
c-a!# by 4ure-!o 5eyes *&o *as c-a!#!n% o*ners&!3 o(er t&e -an".
Pre(!ous to t&e attac&#ent, t&e c!ty treasurer con"ucte" a ta+ sa-e o) t&e sa!"
3ro3erty. 4ure-!o 5eyes bou%&t t&e 3ro3erty !n t&e 3ub-!c auct!on. /&e cert!6cate o)
sa-e *as !n!t!a--y not re%!stere". 7t *as on-y on No(e#ber 3, 1938 t&at t&e sa-e *as
re%!stere" an" a ne* /C/ *as !ssue" un"er t&e na#e o) 5eyes.
7ssue:
W&et&er t&e /C/ un"er t&e na#e o) 5eyes can be cance--e" by reason o)
attac&#ent by MW.
9e-":
No. /a+ sa-e #ust be re%!stere" to %!(e !t b!n"!n% e,ect as a%a!nst t&!r" 3ersons.
/&e "e-aye" re%!strat!on o) t&e sa-e to 5eyes, #a"e t&e attac&#ent (a-!". 4-t&ou%&
(a-!", !t *as subor"!nate to t&e ta+ -!en. W&en t&e ta+ sa-e *as re%!stere" on
No(e#ber 3, 1938, MW, *&!c& &e-" a subor"!nate -!en, cou-" an" s&ou-" &a(e
re"ee#e" t&e 3ro3erty *!t&!n one year )ro# "ate .:ec. 2499 5e(!se" 4"#!n!strat!(e
Co"e1. Not &a(!n% "one so, t&e atte#3t to )orec-ose t&e encu#brance *as ren"ere"
nu%atory. 7t cou-" &a(e 6-e" a t&!r" 3arty c-a!# be)ore No(e#ber 3, 1938 to re"ee#
t&e 3ro3erty )ro# ta+ sa-e.