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ACT NO.

1508 - AN ACT PROVIDING FOR THE MORTGAGING OF PERSONAL PROPERTY AND and other marks of ownership as described and set forth in the certificate of ownership of said animal
FOR THE REGISTRATION OF THE MORTGAGES SO EXECUTED or animals, together with the number and place of issue of such certificates of ownership.

Section 1. The short title of this Act shall be "The Chattel Mortgage Law." If growing crops be mortgaged the mortgage may contain an agreement stipulating that the
mortgagor binds himself properly to tend, care for and protect the crop while growing, and faithfully
Sec. 2. All personal property shall be subject to mortgage, agreeably to the provisions of this Act, and and without delay to harvest the same, and that in default of the performance of such duties the
a mortgage executed in pursuance thereof shall be termed chattel mortgage. mortgage may enter upon the premises, take all the necessary measures for the protection of said
crop, and retain possession thereof and sell the same, and from the proceeds of such sale pay all
Sec. 3. Chattel mortgage defined. A chattel mortgage is a conditional sale of personal property as expenses incurred in caring for, harvesting, and selling the crop and the amount of the indebtedness
security for the payment of a debt, or the performance of some other obligation specified therein, the or obligation secured by the mortgage, and the surplus thereof, if any shall be paid to the mortgagor
condition being that the sale shall be void upon the seller paying to the purchaser a sum of money or or those entitled to the same.
doing some other act named. If the condition is performed according to its terms the mortgage and
sale immediately become void, and the mortgagee is thereby divested of his title. A chattel mortgage shall be deemed to cover only the property described therein and not like or
substituted property thereafter acquired by the mortgagor and placed in the same depository as the
Sec. 4. Validity. A chattel mortgage shall not be valid against any person except the mortgagor, his property originally mortgaged, anything in the mortgage to the contrary notwithstanding.
executors or administrators, unless the possession of the property is delivered to and retained by the
mortgagee or unless the mortgage is recorded in the office of the register of deeds of the province in Sec. 8. Failure of mortgagee to discharge the mortgage. If the mortgagee, assign, administrator,
which the mortgagor resides at the time of making the same, or, if he resides without the Philippine executor, or either of them, after performance of the condition before or after the breach thereof, or
Islands, in the province in which the property is situated: Provided, however, That if the property is after tender of the performance of the condition, at or after the time fixed for the performance, does
situated in a different province from that in which the mortgagor resides, the mortgage shall be not within ten days after being requested thereto by any person entitled to redeem, discharge the
recorded in the office of the register of deeds of both the province in which the mortgagor resides and mortgage in the manner provided by law, the person entitled to redeem may recover of the person
that in which the property is situated, and for the purposes of this Act the city of Manila shall be whose duty it is to discharge the same twenty pesos for his neglect and all damages occasioned
deemed to be a province. thereby in an action in any court having jurisdiction of the subject-matter thereof.

Sec. 5. Form. A chattel mortgage shall be deemed to be sufficient when made substantially in Sec. 9-12. (inclusive) 3
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 mortgage as witnesses to the execution thereof, Sec. 13. When the condition of a chattel mortgage is broken, a mortgagor or person holding a
and each mortgagor and mortgagee, or, in the absence of the mortgagee, his agent or attorney, shall subsequent mortgage, or a subsequent attaching creditor may redeem the same by paying or
make and subscribe an affidavit in substance as hereinafter set forth, which affidavit, signed by the delivering to the mortgagee the amount due on such mortgage and the reasonable costs and
parties to the mortgage as above stated, and the certificate of the oath signed by the authority expenses incurred by such breach of condition before the sale thereof. An attaching creditor who so
administering the same, shall be appended to such mortgage and recorded therewith. redeems shall be subrogated to the rights of the mortgagee and entitled to foreclose the mortgage in
the same manner that the mortgagee could foreclose it by the terms of this Act.
FORM OF OATH.
"We severally swear that the foregoing mortgage is made for the purpose of securing the obligation Sec. 14. Sale of property at public auction; Officer's return; Fees; Disposition of proceeds. The
specified in the conditions thereof, and for no other purpose, and that the same is a just and valid mortgagee, his executor, administrator, or assign, may, after thirty days from the time of condition
obligation, and one not entered into for the purpose of fraud." 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
FORM OF CERTIFICATE OF OATH. situated, provided at least ten days' notice of the time, place, and purpose of such sale has been
"At ___________, in the Province of _________, personally appeared ____________, the parties who signed posted at two or more public places in such municipality, and the mortgagee, his executor,
the foregoing affidavit and made oath to the truth thereof before me. 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
(Notary public, justice of the peace, 1 or other officer, as the case may be.) municipality, at least ten days previous to the sale.

Sec. 6. Corporations. When a corporation is a party to such mortgage the affidavit required may be The officer making the sale shall, within thirty days thereafter, make in writing a return of his doings
made and subscribed by a director, trustee, cashier, treasurer, or manager thereof, or by a person and file the same in the office of the register of deeds where the mortgage is recorded, and the
authorized on the part of such corporation to make or to receive such mortgage. When a partnership register of deeds shall record the same. The fees of the officer for selling the property shall be the
is a party to the mortgage the affidavit may be made and subscribed by one member thereof. same as in the case of sale on execution as provided in Act Numbered One hundred and ninety, 4 and
the amendments thereto, and the fees of the register of deeds for registering the officer's return shall
Sec. 7. Descriptions of property. The description of the mortgaged property shall be such as to be taxed as a part of the costs of sale, which the officer shall pay to the register of deeds. The return
enable the parties to the mortgage, or any other person, after reasonable inquiry and investigation, to shall particularly describe the articles sold, and state the amount received for each article, and shall
identify the same. operate as a discharge of the lien thereon created by the mortgage. The proceeds of such sale shall be
applied to the payment, first, of the costs and expenses of keeping and sale, and then to the payment
If the property mortgaged be large cattle," as defined by section one of Act Numbered Eleven and of the demand or obligation secured by such mortgage, and the residue shall be paid to persons
forty-seven, 2 and the amendments thereof, the description of said property in the mortgage shall holding subsequent mortgages in their order, and the balance, after paying the mortgages, shall be
contain the brands, class, sex, age, knots of radiated hair commonly known as remolinos, or cowlicks, paid to the mortgagor or person holding under him on demand.
If the sale includes any "large cattle," a certificate of transfer as required by section sixteen of Act "1. When the amount of the mortgage does not exceed six thousand pesos, three pesos and fifty
Numbered Eleven hundred and forty-seven 5 shall be issued by the treasurer of the municipality centavos for the first five hundred pesos or fractional part thereof, and one peso and fifty centavos for
where the sale was held to the purchaser thereof. each additional five hundred pesos or fractional part thereof.

Sec. 15. 6, 6a "2. When the amount of the mortgage is more than six thousand pesos but does not exceed thirty
Sec. 16. This Act shall take effect on August first, nineteen hundred and six. thousand pesos, twenty-four pesos for the initial amount not exceeding eight thousand pesos, and
Enacted, July 2, 1906. four pesos for each additional two thousand pesos or fractional part thereof.

Footnotes "3. When the amount of the mortgage is more than thirty thousand pesos but does not exceed one
1. Now Municipal judge. hundred thousand pesos, seventy-five pesos for the initial amount not exceeding thirty-five thousand
2. Now section 511 of the Administrative Code. pesos, and seven pesos for each additional five thousand pesos or fractional part thereof.
3. Repealed by Act 3815, Article 367 approved December 8, 1930.
4. Now Rule 141, section 7 of the Rules of Court. "4. When the amount of the mortgage is more than one hundred thousand pesos but does not exceed
5. Now Section 523 of the Administrative Code. five hundred thousand pesos, one hundred and seventy-six pesos for the initial amount not exceeding
6. Superseded by section 198 of the Administrative Code. The following is the present text of section one hundred ten thousand pesos, and ten pesos for each additional ten thousand pesos or fractional
198 as amended by RA 2711, approved June 18, 1960. part thereof.

"SECTION 198. Registration of chattel mortgages and fees collectible in connection therewith. Every "5. When the amount of the mortgage is more than five hundred thousand pesos, five hundred eighty-
register of deeds shall keep a primary entry book and a registration book for the chattel mortgages; one pesos for the initial amount not exceeding five hundred twenty thousand pesos, and fifteen pesos
shall certify on each mortgage filed for record, as well as on its duplicate, the date, hour, and minute for each additional twenty thousand pesos or fractional part thereof: Provided, however, That
when the same was by him received; and shall record in such books any chattel mortgage, registration of the mortgage in the province where the property is situated shall be sufficient
assignment, or discharge thereof, and any other instruments relating to a recorded mortgage, and all registration: And provided, further, That if the mortgage is to be registered in more than one city or
such instruments shall be presented to him in duplicate, the original to be filed and the duplicate to be province, the register of deeds of the city or province where the instrument is first presented for
returned to the person concerned. registration shall collect the full amount of the fees due in accordance with the schedule prescribed
above, and the register of deeds of the other city or province where the same instrument is also to be
"The recording of a mortgage shall be effected by making an entry, which shall be given a correlative registered shall collect only a sum equivalent to twenty per centum of the amount of fees due and
number, setting forth the names of the mortgagee, and the mortgagor, the sum or obligation paid in the first city or province, but in no case shall the fees payable in any registry be less than the
guaranteed, date of the instrument, name of the notary before whom it was sworn to or minimum fixed in said schedule.
acknowledged, and a note that the property mortgaged, as well as the terms and conditions of the
mortgage, is mentioned in detail in the instrument filed, giving the proper file number thereof. The "(c) For recording each instrument of sale, conveyance, or transfer of the property which is subject of
recording of other instruments relating to a recorded mortgage shall be effected by way of annotations a recorded mortgage, or of the assignment of mortgage credit, the fees established in the preceding
on the space provided therefor in the registration book, after the same shall have been entered in the schedule shall be collected on the basis of ten per centum of the amount of the mortgage or unpaid
primary entry book. balance thereof: Provided, That the latter is stated in the instrument.

"The register of deeds shall also certify the officer's return of sale upon any mortgage, making "(d) For recording each notice of attachment, including the necessary index and annotations, four
reference upon the record of such officer's return to the volume and page of the record of the pesos.
mortgage, and a reference of such return on the record of the mortgage itself, and give a certified
copy thereof, when requested, upon payment of the lawful fees for such copy; and certify upon each "(e) For recording each release of mortgage, including the necessary index and references, the fees
mortgage officer's return of sale or discharge of mortgage; and upon any other instrument relating to established in the schedule under paragraph (b) above shall be collected on the basis of five per
such a recorded mortgage, both on the original and on the duplicate, the date, hour, and minute when centum of the amount of the mortgage.
the same is received for record and record such certificate with the return itself and keep an
alphabetical index of mortgagors and mortgagees, which record and index shall be open to public "(f) For recording each release of attachment, including the proper annotations, two pesos.
inspection.
"(g) For recording each sheriff's return of sale, including the index and references, three pesos.
"Duly certified copies of such records and of filed instruments shall be receivable as evidence in any
court. "(h) For recording a power of attorney, appointment of judicial guardian, administrator, or trustee, or
any other instrument in which a person is given power to act in behalf of another in connection with a
"The register of deeds shall collect the following fees for services rendered by him under this section: mortgage, three pesos.

"(a) For entry or presentation of any document in the primary entry book, one peso. Supporting papers "(i) For recording each instrument or order relating to a recorded mortgage, including the necessary
presented together with the principal document need not be charged any entry or presentation fee index and references, for which no specific fee is provided above, two pesos.
unless the party in interest desires that they be likewise entered.
"(j) For certified copies of records, such fees as are allowed by law for copies kept by the register of
"(b) For filing and recording each chattel mortgage, including the necessary certificates and affidavits, deeds.
the fees established in the following schedule shall be collected:
"(k) For issuing a certificate relative to, or showing the existence or non-existence of, an entry in the
registration book, or a document on file, for each such certificate containing not more than two
hundred words, three pesos; if it exceeds that number, an additional fee of fifty centavos shall be collected for every one hundred words or fractional part thereof, in excess of the first two hundred
words."