ACT NO. 1508 ACT NO. 1508 – AN ACT PROVIDING FOR THE MORTGAGING OF PERSONAL PROPERTY AND FOR THE REGISTRATION OF THE MORTGAGES SO EXECUTED
Sec. 14. Sale of property at public auction; Officer’s return; Fees; Disposition of proceeds. — 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.
The officer making the sale shall, within thirty days thereafter, make in writing a return of his doings and file the same in the office of the register of deeds where the mortgage is recorded, and the register of deeds shall record the same. The fees of the officer for selling the property shall be the 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 be taxed as a part of the costs of sale, which the officer shall pay to the register of deeds. The return shall particularly describe the articles sold, and state the amount received for each article, and shall 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 of the demand or obligation secured by such mortgage, and the residue shall be paid to persons holding subsequent mortgages in their order, and the balance, after paying the mortgages, shall be 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 Numbered Eleven hundred and forty-seven 5 shall be issued by the treasurer of the municipality where the sale was held to the purchaser thereof.
(Petition for Extra Judicial Foreclosure of Chattel Mortgage under Act 1508) The City/Provincial Sheriff City/Province of _____________, Philippines S I R: GREETINGS: Mortgagee _____________, of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, most respectfully alleges: 1. That on _____________, __Name of Mortgagor-Debtor__, of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, executed a Chattel Mortgage in my favor, mortgaging the property described in the Chattel Mortgage Contract hereto attached as Annex "A" and forming an integral part hereof, to secure the payment of loan in the amount which is shown in the promissory note executed by said Mortgagor-Debtor dated _____________, a copy of which is hereto attached as Annex "B" 2. That to the best of my knowledge, the mortgaged property is subject to no prior mortgage or any lien whatsoever and is now in the possession and full control of the above-named Mortgagor-Debtor; 3. That the Mortgagor-Debtor defaulted in his obligation under the aforementioned Chattel Mortgage Contract andPromissory Note;
4.That under the terms and conditions of the Chattel Mortgage Contract, the Mortgagee is entitled to foreclose extra-judicially the mortgaged property, which is more particularly described as follows, to wit:
Make:____________Motor No.:_____________ Series:__________Chassis No.:____________ Type of Body:________Plate No.:___________ CR No.: _____________MVRR No.:____________ 5.That by the terms and conditions of the Chattel Mortgage Contract hereinabove referred to, the principal obligation of the Mortgagor which has become overdue as of _____________ is in the amount of __________________________ (P___________), excluding penalties, liquidated damages, past due interest, attorney's fee representing _______ % of the total obligation due, other charges and expenses of foreclosure. WHEREFORE, I respectfully request you to take possession of the property described in the aforementioned ChattelMortgage Contract and sell the same at Public Auction in accordance with the provisions of Act 1508.Please furnish the undersigned and the Mortgagor-Debtor with copies of your Notice of Sale at least ten (10) days before the sale. _____________, Philippines, __Date__. MORTGAGEE (VERIFICATION)
