ACT NO.

1508 AN ACT PROVIDING FOR THE MORTGAGING OF PERSONAL PROPERTY AND FOR THE REGISTRATION OF THE MORTGAGES SO EXECUTED SECTION 1. The short title of this Act shall be The Chattel Mortgage Law. SECTION 2. All perso al propert! shall be s"b#ect to $ortgage% agreeabl! to the pro&isio s of this Act% a ' a $ortgage e(ec"te' i p"rs"a ce thereof shall be ter$e' chattel $ortgage. SECTION ). Chattel mortgage defined. * A chattel $ortgage is a co 'itio al sale of perso al propert! as sec"rit! for the pa!$e t of a 'ebt% or the perfor$a ce of so$e other obligatio specifie' therei % the co 'itio bei g that the sale shall be &oi' "po the seller pa!i g to the p"rchaser a s"$ of $o e! or 'oi g so$e other act a$e'. If the co 'itio is perfor$e' accor'i g to its ter$s the $ortgage a ' sale i$$e'iatel! beco$e &oi'% a ' the $ortgagee is thereb! 'i&este' of his title. SECTION +. Validity. * A chattel $ortgage shall ot be &ali' agai st a ! perso e(cept the $ortgagor% his e(ec"tors or a'$i istrators% " less the possessio of the propert! is 'eli&ere' to a ' retai e' b! the $ortgagee or " less the $ortgage is recor'e' i the office of the register of 'ee's of the pro&i ce i which the $ortgagor resi'es at the ti$e of $a,i g the sa$e% or% if he resi'es witho"t the -hilippi e Isla 's% i the pro&i ce i which the propert! is sit"ate'. -ro&i'e'% howe&er% That if the propert! is sit"ate' i a 'iffere t pro&i ce fro$ that i which the $ortgagor resi'es% the $ortgage shall be recor'e' i the office of the register of 'ee's of both the pro&i ce i which the $ortgagor resi'es a ' that i which the propert! is sit"ate'% a ' for the p"rposes of this Act the cit! of Ma ila shall be 'ee$e' to be a pro&i ce. SECTION /. Form. * A chattel $ortgage shall be 'ee$e' to be s"fficie t whe $a'e s"bsta tiall! i accor'a ce with the followi g for$% a ' shall be sig e' b! the perso or perso s e(ec"ti g the sa$e% i the prese ce of two wit esses% who shall sig the $ortgage as wit esses to the e(ec"tio thereof% a ' each $ortgagor a ' $ortgagee% or% i the abse ce of the $ortgagee% his age t or attor e!% shall $a,e a ' s"bscribe a affi'a&it i s"bsta ce as herei after set forth% which affi'a&it% sig e' b! the parties to the $ortgage as abo&e state'% a ' the certificate of the oath sig e' b! the a"thorit! a'$i isteri g the sa$e% shall be appe 'e' to s"ch $ortgage a ' recor'e' therewith. 0O1M O0 C2ATTEL MO1T3A3E AN4 A00I4A5IT. This $ortgage $a'e this 6666 'a! of 666666176666 b! 666666666666666% a resi'e t of the $" icipalit! of 66666666666666% -ro&i ce of 666666666666% -hilippi e Isla 's $ortgagor% to 666666666666% a resi'e t of the $" icipalit! of 66666666666% -ro&i ce of 66666666666666% -hilippi e Isla 's% $ortgagee% wit esseth. That the sai' $ortgagor hereb! co &e!s a ' $ortgages to the sai' $ortgagee all of the followi g8'escribe' perso al propert! sit"ate' i the $" icipalit! of 66666666666666% -ro&i ce of 666666666666 a ' ow i the possessio of sai' $ortgagor% to wit. 92ere i sert specific 'escriptio of the propert! $ortgage'.: This $ortgage is gi&e as sec"rit! for the pa!$e t to the sai' 666666% $ortgagee% of pro$issor! otes for the s"$ of 666666666666 pesos% with 9or witho"t% as the case $a! be: i terest thereo at the rate of 66666666666 per ce t"$ per a "$% accor'i g to the ter$s of 6666666666% certai pro$issor! otes% 'ate' 666666666% a ' i the wor's a ' fig"res followi g 9here i sert cop! of the ote or otes sec"re':. 9If the $ortgage is gi&e for the perfor$a ce of so$e other obligatio asi'e fro$ the pa!$e t of pro$issor! otes% 'escribe correctl! b"t co cisel! the obligatio to be perfor$e'.:

The co 'itio s of this obligatio are s"ch that if the $ortgagor% his heirs% e(ec"tors% or a'$i istrators shall well a ' tr"l! perfor$ the f"ll obligatio 9or obligatio s: abo&e state' accor'i g to the ter$s thereof% the this obligatio shall be "ll a ' &oi'. E(ec"te' at the $" icipalit! of 666666666% i the -ro&i ce of 66666666% this 66666 'a! of 1766666 66666666666666666666 9Sig at"re of $ortgagor.: I the prese ce of 66666666666666666 66666666666666666 9Two wit esses sig here.: 0O1M O0 OAT2. ;e se&erall! swear that the foregoi g $ortgage is $a'e for the p"rpose of sec"ri g the obligatio specifie' i the co 'itio s thereof% a ' for o other p"rpose% a ' that the sa$e is a #"st a ' &ali' obligatio % a ' o e ot e tere' i to for the p"rpose of fra"'. 0O1M O0 CE1TI0ICATE O0 OAT2. At 66666666666% i the -ro&i ce of 666666666% perso all! appeare' 666666666666% the parties who sig e' the foregoi g affi'a&it a ' $a'e oath to the tr"th thereof before $e. 66666666666666666666666666666 9Notar! p"blic% #"stice of the peace% or other officer% as the case $a! be.: SECTION <. Corporations. * ;he a corporatio is a part! to s"ch $ortgage the affi'a&it re="ire' $a! be $a'e a ' s"bscribe' b! a 'irector% tr"stee% cashier% treas"rer% or $a ager thereof% or b! a perso a"thori>e' o the part of s"ch corporatio to $a,e or to recei&e s"ch $ortgage. ;he a part ership is a part! to the $ortgage the affi'a&it $a! be $a'e a ' s"bscribe' b! o e $e$ber thereof. SECTION ?. Descriptions of property. * The 'escriptio of the $ortgage' propert! shall be s"ch as to e able the parties to the $ortgage% or a ! other perso % after reaso able i ="ir! a ' i &estigatio % to i'e tif! the sa$e. If the propert! $ortgage' be large cattle% as 'efi e' b! sectio o e of Act N"$bere' Ele&e a ' fort!8se&e % a ' the a$e '$e ts thereof% the 'escriptio of sai' propert! i the $ortgage shall co tai the bra 's% class% se(% age% , ots of ra'iate' hair co$$o l! , ow as remolinos% or cowlic,s% a ' other $ar,s of ow ership as 'escribe' a ' set forth i the certificate of ow ership of sai' a i$al or a i$als% together with the "$ber a ' place of iss"e of s"ch certificates of ow ership. If growi g crops be $ortgage' the $ortgage $a! co tai a agree$e t stip"lati g that the $ortgagor bi 's hi$self properl! to te '% care for a ' protect the crop while growi g% a ' faithf"ll! a ' witho"t 'ela! to har&est the sa$e% a ' that i 'efa"lt of the perfor$a ce of s"ch '"ties the $ortgage $a! e ter "po the pre$ises% ta,e all the ecessar! $eas"res for the protectio of sai' crop% a ' retai possessio thereof a ' sell the sa$e% a ' fro$ the procee's of s"ch sale pa! all e(pe ses i c"rre' i cari g for% har&esti g% a ' selli g the crop a ' the a$o" t of the i 'ebte' ess or obligatio sec"re' b! the $ortgage% a ' the s"rpl"s thereof% if a ! shall be pai' to the $ortgagor or those e title' to the sa$e. A chattel $ortgage shall be 'ee$e' to co&er o l! the propert! 'escribe' therei a ' ot li,e or s"bstit"te' propert! thereafter ac="ire' b! the $ortgagor a ' place' i the sa$e 'epositor! as the propert! origi all! $ortgage'% a !thi g i the $ortgage to the co trar! otwithsta 'i g.

SECTION @. Failure of mortgagee to discharge the mortgage. * If the $ortgagee% assig % a'$i istrator% e(ec"tor% or either of the$% after perfor$a ce of the co 'itio before or after the breach thereof% or after te 'er of the perfor$a ce of the co 'itio % at or after the ti$e fi(e' for the perfor$a ce% 'oes ot withi te 'a!s after bei g re="este' thereto b! a ! perso e title' to re'ee$% 'ischarge the $ortgage i the $a er pro&i'e' b! law% the perso e title' to re'ee$ $a! reco&er of the perso whose '"t! it is to 'ischarge the sa$e twe t! pesos for his eglect a ' all 'a$ages occasio e' thereb! i a actio i a ! co"rt ha&i g #"ris'ictio of the s"b#ect8$atter thereof. SECTION 1). ;he the co 'itio of a chattel $ortgage is bro,e % a $ortgagor or perso hol'i g a s"bse="e t $ortgage% or a s"bse="e t attachi g cre'itor $a! re'ee$ the sa$e b! pa!i g or 'eli&eri g to the $ortgagee the a$o" t '"e o s"ch $ortgage a ' the reaso able costs a ' e(pe ses i c"rre' b! s"ch breach of co 'itio before the sale thereof. A attachi g cre'itor who so re'ee$s shall be s"brogate' to the rights of the $ortgagee a ' e title' to foreclose the $ortgage i the sa$e $a er that the $ortgagee co"l' foreclose it b! the ter$s of this Act. SECTION 1+. Sale of property at public auction; Officers return; Fees; Disposition of proceeds. * The $ortgagee% his e(ec"tor% a'$i istrator% or assig % $a!% after thirt! 'a!s fro$ the ti$e of co 'itio bro,e % ca"se the $ortgage' propert!% or a ! part thereof% to be sol' at p"blic a"ctio b! a p"blic officer at a p"blic place i the $" icipalit! where the $ortgagor resi'es% or where the propert! is sit"ate'% pro&i'e' at least te 'a!sA otice of the ti$e% place% a ' p"rpose of s"ch sale has bee poste' at two or $ore p"blic places i s"ch $" icipalit!% a ' the $ortgagee% his e(ec"tor% a'$i istrator% or assig % shall otif! the $ortgagor or perso hol'i g " 'er hi$ a ' the perso s hol'i g s"bse="e t $ortgages of the ti$e a ' place of sale% either b! otice i writi g 'irecte' to hi$ or left at his abo'e% if withi the $" icipalit!% or se t b! $ail if he 'oes ot resi'e i s"ch $" icipalit!% at least te 'a!s pre&io"s to the sale. The officer $a,i g the sale shall% withi thirt! 'a!s thereafter% $a,e i writi g a ret"r of his 'oi gs a ' file the sa$e i the office of the register of 'ee's where the $ortgage is recor'e'% a ' the register of 'ee's shall recor' the sa$e. The fees of the officer for selli g the propert! shall be the sa$e as i the case of sale o e(ec"tio as pro&i'e' i Act N"$bere' O e h" 're' a ' i et!% a ' the a$e '$e ts thereto% a ' the fees of the register of 'ee's for registeri g the officerAs ret"r shall be ta(e' as a part of the costs of sale% which the officer shall pa! to the register of 'ee's. The ret"r shall partic"larl! 'escribe the articles sol'% a ' state the a$o" t recei&e' for each article% a ' shall operate as a 'ischarge of the lie thereo create' b! the $ortgage. The procee's of s"ch sale shall be applie' to the pa!$e t% first% of the costs a ' e(pe ses of ,eepi g a ' sale% a ' the to the pa!$e t of the 'e$a ' or obligatio sec"re' b! s"ch $ortgage% a ' the resi'"e shall be pai' to perso s hol'i g s"bse="e t $ortgages i their or'er% a ' the bala ce% after pa!i g the $ortgages% shall be pai' to the $ortgagor or perso hol'i g " 'er hi$ o 'e$a '. If the sale i cl"'es a ! large cattle% a certificate of tra sfer as re="ire' b! sectio si(tee of Act N"$bere' Ele&e h" 're' a ' fort!8se&e shall be iss"e' b! the treas"rer of the $" icipalit! where the sale was hel' to the p"rchaser thereof. SECTION 1<. This Act shall ta,e effect o A"g"st first% i etee h" 're' a ' si(. E acte'% B"l! 2% 17C<.