CHATTEL MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

This Chattel Mortgage made and executed by and between:

REY JULIUS G. BETIO of legal age, Filipino, single, and a resident of Brgy.
Tangub, Bacolod City, hereinafter referred to as the MORTGAGOR,

-and-

LOLITA P. AGUILLON of legal age, Filipino, married, and a resident of Brgy.

Bi-ao, Binalbagan, Negros Occidental, hereinafter known as the MORTGAGEE.

WITNESSETH:

That the MORTGAGOR is the absolute and registered owner of a motor

vehicle more particularly described as follows, to wit:

MAKE : MITSUBISHI
SERIES : ADVENTURE GLX M1
DENOMINATION : UTILITY VEHICLE
ENGINE NO. : 4D56AAM9127
CHASSIS NO. : PAEVB5NMGGB002873
YEAR MODEL : 2016
MV FILE NO. : 0601-000000490004

That the MORTGAGOR is indebted unto the MORTGAGEE in the sum of ONE
HUNDRED SIXTY FIVE THOUSAND PESOS (165,000.00), Philippine Currency, receipt
of which is acknowledged by the MORTGAGOR upon the signing of this
instrument, payable within a period of two (2) months or from July 14, 2016 until
September 14, 2016, with interest thereon at the rate of TEN PERCENT (10)% PER
MONTH.

That for, and consideration of this indebtedness, and to assure the performance
of said obligation to pay, the MORTGAGOR hereby conveys by way of CHATTEL
MORTGAGE unto the MORTGAGEE, his heirs and assigns, the above described
personal property, situated and ordinarily kept at Bacolod City, Negros
Occidental now in the possession of said MORTGAGOR.

That the condition of this obligation is that should the MORTGAGOR perform
the obligation to pay the hereinabove cited indebtedness of ONE HUNDRED SIXTY
FIVE THOUSAND PESOS (Php: 160,000.00) together with accrued interest thereon,
this chattel mortgage shall at once become null and void and of no effect whatsoever,
otherwise, it shall remain in full force and effect.

FORECLOSURE
In the event the Mortgagor(s) shall fail or refuse to pay the obligations
herein secured, or any of the amortizations of such indebtedness when due, or
to comply with the any conditions and stipulations herein agreed, or shall, during
the time this mortgage is in force, institute insolvency proceedings or be
involuntarily declared insolvent, or suffers any of the “Events of Default” as
stated in the Promissory Note which is an integral part of this contract, or if the
mortgage cannot be recorded in the corresponding Registry of Deeds, then all
the obligations of the Mortgagor(s) secured by this Mortgage and all the
amortizations thereof shall immediately become due, payable and defaulted and
the Mortgagee may immediately, without personal notice to the Mortgagor(s),
foreclose this mortgage judicially in accordance with the Rules of Court, or
extrajudicially in accordance with Act. No 3135 as amended, or Act No. 1508. In
case of judicial foreclosure, the Mortgagor(s), hereby consents to the
appointment of the Mortgage or of any of its employees as receiver, without any
bound, to take charge of the Mortgage property at once, and to hold possession
of the same, including the rents, benefits and profits derived from the Mortgage
property (ies) before the sale, less the costs and expenses of the receivership.

PENALTIES, DAMAGES AND COLLECTION EXPENSES

THE Mortgagor(s) in all cases of judicial or extrajudicial foreclosure hereby
agree further to the jointly and severally pay a penalty on any or all overdue
account equivalent to ___________ percent per month compounded monthly
until fully paid in addition to liquidated damages which is hereby fixed at
____________percent (____%) of the total indebtedness then unpaid, which in
no case shall be less than _________ percent (_____%) of the total amount due
including interest, charges, fees allowed by law and penalties, in full and
without, deduction, plus __________ percent (______%)attorney’s fees which
in no case shall be less than _________ percent (______%)o9f the total amount
due whether actually incurred or not, exclusive of any judicial or extrajudicial
expenses and cost of collection. It is further agreed that all such expenses of
collection, shall be paid to the Mortgagee by the Mortgagor(s) which amount
may be paid out of any sums realized as rents and profits derived from the
mortgaged property(ies) or from proceeds realized from the sale of said
property and this mortgage shall likewise stand as security therein. It is also
agreed that the Mortgagee may advance the taxes and insurance premium due
in case the Mortgagor(s) shall fail to pay them. This Mortgage shall also stand as
security for the repayment of the same.

MORTGAGEE APPOINTED ATTORNEY-IN-FACT

In the event of extrajudicial foreclosure, the Mortgagor hereby appoints
the Mortgagee as its attorney-in-fact with full powers of substitution and hereby
authorizes the latter to sell the mortgaged property(ies) to sign all documents
and perform any act requisite and necessary to accomplish said purpose after
the notice and publication required by Act 3135 as amended have been complied
with, it being understood that there is no need to the Mortgagor(s) about the
scheduled foreclosure sale. For this purpose, the Mortgagee may, such sale at
public auction and thereafter execute the necessary certificate of sale in the
favor of the highest bidder.

Upon the breach of any condition of this Mortgage and/or loans,

overdrafts and/or other forms of credit accommodations of the Mortgagor(s) in
addition to the remedies herein stipulated, the Mortgagee having been
appointed any attorney-in-fact of the Mortgagor shall have the full powers and
authority to take actual possession of the mortgaged property(ies) without the
necessity for any judicial order, or any permission or power to collect rents and
to eject tenants, to lease or sell the mortgaged property, or any part thereof, at
public or private sale without previous notice or advertisement of any kind and
execute the corresponding bills of sale, lease or other agreement that may be
deemed convenient, to make repairs or improvement on the mortgaged
property(ies) and pay for the same, and perform any other act which the
Mortgage may deem convenient for the proper administration of the mortgaged
property(ies). For this purpose, the Mortgagor(s), its substitute, directors,
officers or attorney-in-fact shall not be criminally, civilly or in any manner be
liable for any such acts herein mentioned. The payment of any expenses
advanced by the Mortgagee in connection with the purpose indicated herein
also guaranteed by this mortgage and such amount advanced shall bear interest
at the rate of ____________percent (____%) per annum as indicated in
condition 5 hereof.

DISPOSITION OF PROCEEDS AND FUNDS ON HAND

Any amount received from the sale, disposal or administration

abovementioned may be applied to the payment of the repairs, improvements,
taxes and assessments and any other incidental expenses and obligations; to the
payment of the original indebtedness and interest thereof, and also to the
satisfaction of all other obligations owing by the Mortgagor(s) to the Mortgagee.
The power herein granted shall not be revoked during the life of mortgage, and
all acts that may be executed by the Mortgagee by virtue of said power are
hereby confirmed and ratified.

In addition to the foregoing remedies, the Mortgagee shall have the right
to apply, without notice to the Mortgagor(s), any fund belonging to the
Mortgagor(s) on the deposit with the mortgagee, or otherwise to the full or
partial payment of any obligation of the Mortgagor(s) to the Mortgagee, as
principal, surety, co-maker, or in any other capacity, whether such obligation
was contracted prior to or during the life of the Mortgage.

PROVISION, COVENANTS AND REPRESENTATIONS

a. The Mortgagor(s) shall neither lease the mortgaged property not
sell or dispose of the same in any manner, without the written
consent of the Mortgagee and in case breach thereof, the
Mortgagee may immediately foreclose this mortgage.
b. If however, during the existence of the mortgage, the
property(ies) hereby mortgaged, or any portion thereof, is
leased or sold with the consent of the Mortgagee, it shall be the
obligation of the Mortgagor(s) to impose as condition of sale,
alienation or encumbrance that the vendee or the party, in
whose favor the alienation or encumbrance is made, should take
the property (ies), subject to the obligations under which it is
constituted, it being understood that the Mortgagor(s) is not in
any manner relieved of his obligation to the Mortgagee under
this Mortgage by such sale, alienation or encumbrance. On the
Contrary, both the vendor and the vendee, or the party in whose
favor the alienation or encumbrance is made, shall be jointly and
severally liable for said mortgage obligations.
c. It shall also be incumbent upon the Mortgagor(s) to make it a
condition of the sale or alienation that the vendee, or any other
party in whose favor the alienation or encumbrance is made,
shall recognize, as first lien, the existing mortgage or
encumbrance in favor of the Mortgagee, as well as any new or
modified mortgage covering the same property to be executed
by said Mortgagor(s) in favor of the Mortgagee, and shall further
agree, promise and bind himself to recognize and respect any
extension of the terms of the original mortgage granted by the
Mortgagee In favor of the Mortgagor(s) and such extended
mortgage shall be considered as prior and superior
encumbrance as the original mortgage. It is also further
understood that should the Mortgagor(s) sell, or in any manner
alienate or encumbrance as the original mortgage. It is also
further understood that should the Mortgagor(s) and such
extended mortgage shall be considered as prior and superior
encumbrance as the original mortgage. It is also further
understood that should the Mortgagor(s) sell, or in any manner
alienate or encumbrance the he/she/they shall not transfer the
property(ies) in violation of this agreement, he/she/they shall
respond in damages to the Mortgagee. The Mortgagor(s) shall
not transfer the property(ies) herein mortgaged to another
location without consent of the Mortgagee.
d. If, at any time during the existence of this mortgage and/or as
long as the Mortgagor(s) is indebted to the Mortgagee, the
mortgaged property(ies) or any portion thereof shall be lost,
damaged or shall suffer a depreciation in value due to any cause
whatsoever, the Mortgagor(s), his/her/their successors or
assigns, shall give additional security acceptable to the
 Mortgagee, so as to bring the total value of the securities held
by the Mortgagee, so as to bring the total value of the securities
as appraised by the Mortgagee at that time the original
obligation was contracted and/or the subsequent additional
loans were given;

IN WITNESS WHEREOF, the parties have hereunto set their hands, this 14TH
day of July 2016 at Himamaylan City, Negros Occidental.

REY JULIUS G. BETIO LOLITA P. AGUILLON

Mortgagor Mortgagee

SIGNED IN THE PRESENCE OF:

___________________ _____________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF HIMAMAYLAN ) SS.
PROVINCE OF NEG. OCC. )
x---------------------------------------------------x

BEFORE ME, a Notary Public, this 14TH day of July 2016, personally appeared REY
JULIUS G. BETIO with his TIN: 410-587-036; and LOLITA P. AGUILLON with her TIN:
180-085-954 as proof of their identification, known to me to be the same persons
who executed the foregoing document and acknowledged to me that the same is
her free and voluntary act and deed.

The foregoing instrument relates to a CHATTEL MORTGAGE consisting of two

(2) pages including this page on which this acknowledgment is written has been
signed by the parties and their instrumental witnesses on each and ecery page and
sealed by my notarial seal.

WITNESS MY HAND AND SEAL on the place and date first above written.

DOC. NO. 394

PAGE NO. 79
BOOK NO. XVI
SERIES OF 2016
AFFIDAVIT OF GOOD FAITH

We, the undersigned MORTGAGOR AND MORTGAGEE hereby jointly and

severally swear that we executed the foregoing Chattel Mortgage in order to
secure the indebtedness therein and for no other purpose or purposes contrary to
law.

REY JULIUS G. BETIO LOLITA P. AGUILLON

Mortgagor Mortgagee
TIN: 410-587-036 TIN: 180-085-954

SUBSCRIBED AND SWORN TO Before me this 14TH day of July 2016 at Himamaylan
City, Philippines. Affiants exhibited to me their respective government issued I.D.s under
their respective names as competent proof of their identity.

DOC. NO. 394

PAGE NO. 79
BOOK NO. XVI
SERIES OF 2016