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ACT NO.

3135AN ACT TO REGULATE THE SALE OF PROPERTY UNDERSPECIAL POWERS INSERTED IN OR ANNEXED TO REAL-ESTATE MORTGAGES SECTION 1.When a sale is made under a special power inserted in or attached to any real-estate mortgage hereafter made as security for the payment of money or the fulfillment of any other obligation, the provisions of the following election shall govern as to the manner in which the sale and redemption shall be effected, whether or not provision for the same is made in the power. SECTION 2.Said sale cannot be made legally outside of the province in which the property sold is situated; and in case the p l a c e w i t h i n s a i d p r o v i n c e i n w h i c h t h e s a l e i s t o b e m a d e i s subject to stipulation, such sale shall be made in said place or in the municipal building of the municipality in which the property or part thereof is situated. SECTION 3.Notice shall be given by posting notices of the sale for not less than twenty days in at least three public places of the municipality or city where the property is situated, and if such property is worth more than four hundred pesos, such notice shall a l s o b e p u b l i s h e d o n c e a w e e k f o r a t l e a s t t h r e e c o n s e c u t i v e weeks in a newspaper of general circulation in the municipality or city. S E C T I O N 4 . T h e s a l e s h a l l b e m a d e a t p u b l i c a u c t i o n , between the hours of nine in the morning and four in the afternoon; and shall be under the direction of the sheriff of the province, the justice or auxiliary justice of the peace of the municipality in which such sale has to be made, or a notary public of said municipality, w h o s h a l l b e e n t i t l e d t o c o l l e c t a f e e o f f i v e p e s o s e a c h d a y o f actual work performed, in addition to his expenses. S E C T I O N 5 . A t a n y s a l e , t h e c r e d i t o r , t r u s t e e , o r o t h e r persons authorized to act for the creditor, may participate in the bidding and purchase under the same conditions as any other bidder, unless the contrary has been expressly provided in the mortgage or trust deed under which the sale is made. S E C T I O N 6 . I n a l l c a s e s i n w h i c h a n e x t r a j u d i c i a l s a l e i s made under the special power hereinbefore referred to, the debtor, his successors-in-interest or any judicial creditor or judgment creditor of said debtor, or any person having a lien on the property s u b s e q u e n t t o t h e m o r t g a g e o r d e e d o f t r u s t u n d e r w h i c h t h e property is sold, may redeem the same at any time within the termo f o n e y e a r f r o m a n d a f t e r t h e d a t e o f t h e s a l e ; a n d s u c h redempti on shall be governed by the provisions of sections four hundred and sixty-four to four hundred and sixty-six, inclusive, of the Code of Civil Procedure, in so far as these are not inconsistent with the provisions of this Act. SECTION 7.In any sale made under the provisions of this Act, the purchaser may petition the Court of First Instance of the p r o v i n c e o r p l a c e w h e r e t h e property or any part thereof is situated, to give him possession thereof during the redemption period, furnishing bond in an amount equivalent to the use of the property for a period of twelve months, to indemnify the debtor in c a s e i t b e s h o w n t h a t t h e s a l e w a s m a d e w i t h o u t v i o l a t i n g t h e mortgage or without complying with the requirements of this Act. Such petition shall be made under oath and filed in form of an ex parte motion in the registration or cadastral proceedings if the property is registered, or in special proceedings in the case of property registered under the Mortgage Law or under section one hundred and ninety-four of the Administrative Code, or of any other real property encumbered with a mortgage duly registered in the office of any register of deeds in accordance with any existing law, and in each case the clerk of the court shall, upon the filing of such petition, collect the fees specified in paragraph eleven of section one hundred and fourteen of Act Numbered Fo ur hundred and ninety-six, as amended by Act Numbered Twenty-eight hundred and sixty-six, and the court shall, upon approval of the bond, order that a writ of possession issue, addressed to the sheriff of the province in which the property is situated, who shall execute said order immediately. SECTION 8.The debtor may, in the proceedings in which possession was requested, but not later than thirty days after the purchaser was given possession, petition that the sale be set aside and t he writ of possession cancelled, specif ying the damages

of theC o d e o f C i v i l P r o c e d u r e . furnishing bond in an amount equivalent to the use of the property for a period of twelvemonths. T h e f o l l o w i n g t h r e e s e c t i o n s a r e h e r e b y inserted after section six of said Act Numbered Thirty-one hundred and thirty-five:" S E C . Either of the parties may appeal from the order of the judge in accordance with section fourteen of Act Numbered Four hundred and ninety-six. and the court shall. it shall dispose in his favor of a l l o r p a r t o f t h e b o n d f u r n i s h e d b y t h e p e r s o n w h o o b t a i n e d possession. inclusive. but the order of possession shall continue in effect during the pendency of the appeal. and in each c a s e t h e c l e r k o f t h e c o u r t s h a l l . Such petition shall be made under oath and filed in form of an ex parte motion in the registration or cadastral proceedings if the property is registered. the purchaser may petition the Court of First Instance of the province or place where the property or anyp a r t t h e r e o f i s s i t u a t e d . w h o s h a l l e x e c u t e s a i d o r d e r immediately. upon approval of the bond. to indemnify the debtor in case it be shown that the sale was made without violating the mortgage or without complying with the requirements of this Act. 4118AN ACT TO AMEND ACT NUMBERED THIRTY-ONE HUNDREDAND THIRTY-FIVE. but not later than thirty days after the purchaser was given possession. may redeem the same at any time within the term of one year from and after the date of the sale. or used it gainfully. i n t h e p r o c e e d i n g s i n which possession was requested. T h e d e b t o r m a y . his successors-in-interest or any judicia creditor or judgment creditor of said debtor." is hereby amended to read as follows:" S E C . and if it finds the complaint of the debtor justified. I n a l l c a s e s i n w h i c h a n e x t r a j u d i c i a l sale is made under the special power hereinbefore referred to.Approved: March 6. addressed to the sheriff of the province in which thep r o p e r t y i s s i t u a t e d . if the purchaser occupied the property as his own dwelling. because the mortgage was not violated or the sale was not made in accordance with the provisions hereof. S E C T I O N 1 0 . 1924 A c t s h a l l t a k e e f f e c t o n i t s ACT NO.o n e hundred and thirtyfive. or in special proceedings in the case of property registered under the Mortgage Law or under section one hundred and ninety-four of the Administrative C o d e . u p o n t h e f i l i n g o f s u c h petition. S E C T I O N 9 . I n a n y s a l e m a d e u n d e r t h e p r o v i s i o n s of this Act. . W h e n t h e p r o p e r t y i s r e d e e m e d a f t e r t h e purchaser has be e n g i v e n p o s s e s s i o n .s i x ." S E C T I O N 1 . collect the fees specified in paragraph eleven of section one hundred and fourteen of Act Numbered Four h u n d r e d a n d n i n e t y . or any person having a lien on the property subsequent to the mortgage or deed of trust under which the property is sold. S e c t i o n s i x o f A c t N u m b e r e d T h i r t y . 6 . T h i s approval. 8 . ENTITLED "AN ACT TO REGULATE THESALE OF PROPERTY UNDER SPECIAL POWERS INSERTEDIN OR ANNEXED TO REAL-ESTATE MORTGAGES."S E C T I O N 2 . and the court shall take cognizance of this petition in accordance with the summary procedure provided for in section one hundred and twelve of Act Numbered Four hundred and ninety-six. the redeemer may deduct from the price the interest of one per centum per month provided for in section four hundred and sixty-five of the Code of Civil Procedure. entitled "An Act to regulate the sale of p r o p e r t y u n d e r s p e c i a l p o w e r s i n s e r t e d i n o r a n n e x e d t o r e a l . S E C . order that a writ of possession issue. 7 . o r o f a n y other real property encumbered with a mortgage duly registered in the o f f i c e o f a n y r e g i s t e r o f deeds in accordance with any existing law. t h e r e d e e m e r s h a l l b e entitled to deduct from the price of redemption any rentals that said purchaser may have collected in case the property or any part thereof was rented.estate mortgages. it being town property.suffered by him. t o g i v e h i m p o s s e s s i o n t h e r e o f during the redemption period. the debtor. it being rural property. a s a m e n d e d b y A c t N u m b e r e d Twentyeight hundred and sixty-six. i n s o f a r a s t h e s e a r e n o t inconsistent with the provisions of this Act. and such redemption shall be governed by the provisions of sections four hundred and sixty-four to four hundred and sixty-six.

if the purchaser occupied the property as his own dwelling. making it section ten. the redeemer shall be entitled to deduct from the price of redemption any rentals that said purchaser may have collected in case the property or any part thereof was rented. it being rural property. Either of the parties may appeal from the order of the judge in accordance with section fourteen of Act Numbered Four hundred and ninety-s i x . December 7. SECTION 4.petition that the sale be set aside and the writ of possession cancelled. it shall dispose in his favor of all or part of the bond furnished by the person who obtained possession." S E C . and if it finds the complaint of the debtor justified. and the court shall t a k e c o g n i z a n c e o f t h i s p e t i t i o n i n a c c o r d a n c e w i t h t h e summary procedure provided for in section one hundred and twelve of Act Numbered Four hundred and ninety-six.The number of the present section seven of said Act Numbered Thirtyone hundred and thirty-five is hereby changed. it being town property.This Act shall take effect on its approval. b u t t h e o r d e r o f p o s s e s s i o n s h a l l c o n t i n u e i n e f f e c t during the pendency of the appeal. the redeemer may deduct from the price the interest of one per centum per month provided for in section four hundred and sixty-five of the Code of Civil Procedure. Approved. 9 . 1933.s p e c i f y i n g t h e d a m a g e s s u f f e r e d b y h i m . . or used it gainfully. "SECTION 3. b e c a u s e t h e m o r t g a g e w a s n o t v i o l a t e d o r t h e s a l e w a s n o t m a d e i n accordance with the provisions hereof. W h e n t h e p r o p e r t y i s r e d e e m e d a f t e r the purchaser has been given possession.