Professional Documents
Culture Documents
CHAPTER 3
Mortgage
Article 2131. The form, extent and consequences of a mortgage, both as to its
constitution, modification and extinguishment, and as to other matters not included
in this Chapter, shall be governed by the provisions of the Mortgage Law and of the
Land Registration Law. (1880a)
Article 2124. Only the following property may be the object of a contract of
mortgage:
(1) Immovables;
B.
(2) Alienable real rights in accordance with the laws, imposed upon
immovables.
Nevertheless, movables may be the object of a chattel mortgage. (1874a)
Article 2125. In addition to the requisites stated in article 2085, it is indispensable,
in order that a mortgage may be validly constituted, that the document in which it
appears be recorded in the Registry of Property. If the instrument is not recorded,
the mortgage is nevertheless binding between the parties.
The persons in whose favor the law establishes a mortgage have no other right than
to demand the execution and the recording of the document in which the mortgage
is formalized. (1875a)
Article 2126. The mortgage directly and immediately subjects the property upon
which it is imposed, whoever the possessor may be, to the fulfillment of the
obligation for whose security it was constituted. (1876)
Article 2127. The mortgage extends to the natural accessions, to the
improvements, growing fruits, and the rents or income not yet received when the
obligation becomes due, and to the amount of the indemnity granted or owing to the
proprietor from the insurers of the property mortgaged, or in virtue of expropriation
for public use, with the declarations, amplifications and limitations established by
law, whether the estate remains in the possession of the mortgagor, or it passes into
the hands of a third person. (1877)
Article 2128. The mortgage credit may be alienated or assigned to a third person,
in whole or in part, with the formalities required by law. (1878)
Article 2129. The creditor may claim from a third person in possession of the
mortgaged property, the payment of the part of the credit secured by the property
which said third person possesses, in the terms and with the formalities which the
law establishes. (1879)
Article 2130. A stipulation forbidding the owner from alienating the immovable
mortgaged shall be void. (n)
Section 5. Functions, powers and duties of the Board. The Board of governors shall
have the following functions, powers and duties:
1. To adopt a constitution and by-laws;
2. To adopt a uniform set of rules to determine and govern amateur
athletes and sports in the Philippines;
3. To adopt rules and regulations, consistent with administrative due
process, to govern the procedure to be observed by the National Sports'
Association and the executive committee in hearing and deciding cases
before them either on initial hearing or an appeal;
4. To suspend for cause a member-association of the federation by a vote of
two-thirds of the board and withdrawn recognition of an association by a
vote of three-fourths of the board. The reinstatement to active status of the
association affected shall be effected in the same manner;
5. To authorize the executive committee to negotiate and conclude, for and
in behalf of the federation, transactions for the acquisition, disposition, and
encumbrance of real or personal property as well as the raising of funds for
the accomplishment of the purposes of the federation.
Section 6. Meeting, quorum of the Board. The board of governors shall have an
annual general meeting at such time and place as may be provided by its
constitution and by laws. Special meetings may be called by the President either at
his own initiative or upon the request of one-third of the members of the board.
At all meetings of the board, the presence of a majority of the members thereof shall
constitute a quorum for the valid transaction of business. Each member of the Board
shall be entitled to only one vote and no vote by proxy shall be allowed.
The President and Vice-Presidents shall serve for a term of two years and the
executive secretary-treasurer for a term of four years beginning on the first day of
the month following their election and until their successors shall have been elected
and qualified: Provided, however, That no officer's position shall be deemed vacated
if he ceases to be the representative of his association in the board and such
vacancy may be filled for the unexpired term by special election at a meeting of the
board called for that purpose.
Section 10. Formation of Board of Governors and Executive Committee. The Board
of Governors and Executive Committee hereinbefore provided shall be formed and
organized for the effective discharge of their functions herein as soon as nine
National Sports' Associations shall have been fully organized and operating and shall
assume their rights and duties hereunder.
Applications for recognition as a National Sports' Association shall be filed with the
executive committee together with, among others, a copy of the constitution and bylaws and a list of the members of the proposed association, and a filing fee of ten
pesos.
The Executive Committee shall give the recognition applied for if it is satisfied that
said association will promote the purposes of this Act and particularly section three
hereof. No application shall be held pending for more than three months after the
filing thereof without any action having been taken thereon by the executive
committee. Should the application be rejected, the reasons for such rejection shall
be clearly stated in a written communication to the applicant. Failure to specify the
reasons for the rejection shall not affect the application which shall be considered as
unacted upon: Provided, however, That until the executive committee herein
provided shall have been formed, applications for recognition shall be passed upon
by the duly elected members of the present executive committee of the Philippine
Amateur Athletic Federation. The said executive committee shall be dissolved upon
the organization of the executive committee herein provided: Provided, further, That
the functioning executive committee is charged with the responsibility of seeing to it
that the National Sports' Associations are formed and organized within six months
from and after the passage of this Act.
Section 12. Nature of Associations. The National Sports' Associations formed herein
shall be autonomous in character and shall have exclusive control over the
development and promotion of the particular sports for which they are organized.
Section 13. Membership. Each National Sports' Association shall, by its constitution
and by-laws, determine its organization and membership: Provided, however, That
no team, school, club, organization, or entity shall be admitted as a voting member
of an association unless 60% of the athletes composing said team, school, club,
organization, or entity are Filipino citizens.
Section 14. Functions, powers and duties of Associations. The National Sports'
Association shall have the following functions, powers and duties:
1. To adopt a constitution and by-laws for their internal organization and
government;
exist its properties and funds shall be held in trust by the federation and may be
utilized as in the case of common properties and funds until such time as they shall
again be needed by the successor of the dissolved or defunct association.
Particular properties of National Sports' Associations shall comprise such real and
personal properties as shall be owned by them by purchase, donations, bequests, or
otherwise.
Particular funds of National Sports' Association shall comprise the following:
(a) Monies raised through donations and receipts from benefit games, and
officially conducted competitions.
(b) Annual dues from their respective members, the annual dues to be paid
to the federation by each association shall be determined by the executive
committee after taking into consideration the paying capacity of the
Association concerned, while that to be paid to the National Sports'
Association by their respective members shall be determined by each
association.
Section 19. Presidential Land Grant. The provisions of any existing law to the
contrary notwithstanding, the President, upon the recommendation of the Secretary
of Agriculture and Natural Resources may, by donation, sale, lease or otherwise,
grant to the Philippine Amateur Athletic Federation portions of the land of the public
domain as may be necessary to carry out the purposes of this Act.
Section 20. Expenditures of funds and uses of properties. Common funds of the
federation shall be expended for any or all of the following purposes:
(a) To defray the administrative expenses of the federation.
(b) To defray the expenses for the maintenance, preservation, and
improvement of the common properties of the federation.
(c) To defray the transportation, equipment and board and lodging
expenses of Philippine Athletic delegations and participants to the Olympics
and Asians Games and other International competitions as well as the
preparation for the holding of Olympic competitions and Asian games in the
Philippines: Provided, however,That should the funds not be sufficient for
the purpose, voluntary contributions may be secured from the Associations
but such contribution shall first be applied to defray the expenses of the
Association making the contribution.
Particular funds of the National Sports' Associations shall be expended for the
accomplishment of their respective purposes.
Section 27. Separability clause. In the event any provision of this Act or the
application of such provision to any person or circumstance is declared
unconstitutional, the remainder of this Act or the application of said provision to
other persons or circumstances shall not be affected thereby.
Section 22. Exemption of income and properties from taxes. Any laws to the
contrary notwithstanding, all income, properties, and importation of sports
equipment and materials by the Philippine Amateur Athletic Federation and the
members shall be exempt from amusement, real property, specific taxes and all
other taxes and duties: Provided, however, That the sports equipment and material
imported herein shall be for the exclusive use of the federation, the associations and
their athlete members and are not to be disposed of for commercial purposes or for
profit.
Section 28. This Act shall take effect upon its approval.
Section 23. Effect of non-membership in the federation. From and after the date of
the approval of this Act, no individual athlete, team, club, or organization engaged in
sports activities who is not a member of an association as formed hereunder shall be
allowed to participate in the national open championships and represent the
Philippines in any competition at home or abroad or to enjoy the privileges
hereunder.
Section 24. Penal Clause. A penalty of not exceeding one year imprisonment or a
fine of not more than one thousand pesos or both at the discretion of the court shall
be imposed upon any person who:
a. Shall solicit funds for any of the purposes mentioned in this Act without
being authorized to do so hereunder or by the Philippine Amateur Athletic
Federation or its member Associations;
b. Shall, without authority, use the word "Olympic", the Olympic shield,
Olympic insignia and such other emblem designed and prescribed by the
federation or any association for the exclusive use of Filipino Athletic
members.
c. Shall sell or otherwise dispose of the sports equipment and material
mentioned in section eighteen hereof for commercial purposes or for profit.
Section 25. Appropriation for the formation of National Sports' Associations. There
shall be appropriated from thousands of the National Treasury not otherwise
appropriated the sum of One hundred thousand pesos for the purpose of defraying
the expenses in the formation of National Sports' Associations as provided herein.
Section 26. Repealing clause. Act Numbered Three thousand two hundred and
sixty-two and all other Acts, Executive orders, rules and regulations or parts thereof
inconsistent herewith are hereby repealed.
Upon the finality of the order of confirmation or upon the expiration of the period of
redemption when allowed by law, the purchaser at the auction sale or last
redemptioner, if any, shall be entitled to the possession of the property unless a
third party is actually holding the same adversely to the judgment obligor. The said
purchaser or last redemptioner may secure a writ of possession, upon motion, from
the court which ordered the foreclosure. (3a)
Section 4. Disposition of proceeds of sale. The amount realized from the
foreclosure sale of the mortgaged property shall, after deducting the costs of the
sale, be paid to the person foreclosing the mortgage, and when there shall be any
balance or residue, after paying off the mortgage debt due, the same shall be paid
to junior encumbrancers in the order of their priority, to be ascertained by the court,
or if there be no such encumbrancers or there be a balance or residue after payment
to them, then to the mortgagor or his duly authorized agent, or to the person
entitled to it. (4a)
Section 5. How sale to proceed in case the debt is not all due. If the debt for
which the mortgage or encumbrance was held is not all due as provided in the
judgment as soon as a sufficient portion of the property has been sold to pay the
total amount and the costs due, the sale shall terminate; and afterwards as often as
more becomes due for principal or interest and other valid charges, the court may,
on motion, order more to be sold. But if the property cannot be sold in portions
without prejudice to the parties, the whole shall be ordered to be sold in the first
instance, and the entire debt and costs shall be paid, if the proceeds of the sale be
sufficient therefor, there being a rebate of interest where such rebate is proper. (5a)
Section 6. Deficiency judgment. If upon the sale of any real property as provided
in the next preceding section there be a balance due to the plaintiff after applying
the proceeds of the sale, the court, upon motion, shall render judgment against the
defendant for any such balance for which, by the record of the case, he may be
personally liable to the plaintiff, upon which execution may issue immediately if the
balance is all due at the time of the rendition of the judgment; otherwise; the
plaintiff shall be entitled to execution at such time as the balance remaining
becomes due under the terms of the original contract, which time shall be stated in
the judgment. (6a)
Section 7. Registration. A certified copy of the final order of the court confirming
the sale shall be registered in the registry of deeds. If no right of redemption exists,
the certificate of title in the name of the mortgagor shall be cancelled, and a new
one issued in the name of the purchaser.
Where a right of redemption exists, the certificate of title in the name of the
mortgagor shall not be cancelled, but the certificate of sale and the order confirming
the sale shall be registered and a brief memorandum thereof made by the registrar
of deeds upon the certificate of title. In the event the property is redeemed, the
deed of redemption shall be registered with the registry of deeds, and a brief
memorandum thereof shall be made by the registrar of deeds on said certificate of
title.
If the property is not redeemed, the final deed of sale executed by the sheriff in
favor of the purchaser at the foreclosure sale shall be registered with the registry of
deeds; whereupon the certificate of title in the name of the mortgagor shall be
cancelled and a new one issued in the name of the purchaser. (n)
Section 8. Applicability of other provisions. The provisions of sections 31, 32 and
34 of Rule 39 shall be applicable to the judicial foreclosure of real estate mortgages
under this Rule insofar as the former are not inconsistent with or may serve to
supplement the provisions of the latter. (8a)
D.
Republic of the Philippines
SUPREME COURT
Manila
A.M. No. 99-10-05-0
August 7, 2001
5. The name/s of the bidder/s shall be reported by the sheriff or the notary
public who conducted the sale to the Clerk of Court before the issuance of
the certificate of sale.
This Resolution amends or modifies accordingly Administrative Order No. 3 issued by
then Chief Justice Enrique M. Fernando on 19 October 1984 and Administrative
Circular No. 3-98 issued by the Chief Justice Andres R. Narvasa on 5 February 1998.
The Court Administrator may issue the necessary guidelines for the effective
enforcement of this Resolution.
The Clerk of Court shall cause the publication of this Resolution in a nuewspaper of
general circulation not later than August 14, 2001 and furnish copies thereof to the
Integrated Bar of the Philippines.
This Resolution shall take effect on the 1st day of September of the year 2001.
Promulgated this 7th day of August 2001 in the City of Manila.
Davide, Jr., C.J., Bellosillo, Melo, Puno, Vitug, Kapunan, Mendoza, Panganiban,
Quisumbing, Pardo, Buena, Gonzaga-Reyes, Ynares-Santiago, and De Leon, Jr.,
JJ., concur.
Sandoval-Gutierrez J., on leave.
4. The Executive Judge shall, with the assistance of the Clerk of Court, raffle
applications for extrajudicial foreclosure of mortgage under the direction of
the sheriff among all sheriffs, including those assigned to the Office of the
Clerk of Court and Sheriffs IV assigned in the branches.
Administrator to prepare the guidelines for the enforcement of A.M. No. 99-10-05-0
resolutions of January 30, 2001 and August 7, 2001, directing the Office of the Court
(Section 7 (c), Rule 141, Rules of Court, as amended by A.M. No. 00-2-01-SC,
under the direction of the Sheriff or a notary public pursuant to Art.No. 3135, as
February 1, 2000).
amended, and Act 1508, as amended, shall be filed with the Executive Judge,
Cooperatives, thrift banks, and rural banks are not exempt from the payment of
through the Clerk of Court, who is also the Ex-Officio Sheriff (A.M. No. 99-10-05-0, as
filing fees and other fees under these guidelines (A.M. No. 98-9-280-RTC, September
29, 1998; A.M. No. 99-3-93-RTC, April 20, 1999; and A.M. No. 92-9-408-0).
d. In case the application is for the extra-judicial foreclosure of mortgages of real
estates and/or chattels in different locations covering one indebtedness, issue, apart
from the official receipt for the fees, a certificate of payment indicating the amount
of indebtedness, the filing fees collected, the mortgages sought to be foreclosed, the
real estates and/or chattels mortgaged and their respective locations, for purposes
of having the application docketed with the Clerks of Court in the places where the
other properties are located and of allowing the extra-judicial foreclosure to proceed
thereat. (A.M. No. 99-10-05-0, par. 2(e)).
Sec. 3. The application for extra-judicial foreclosure shall be raffled under the
supervision of the Executive Judge, with the assistance of the Clerk of Court and ExOficio Sheriff, among all Sheriffs including those assigned to the Office of the Clerk
of court and Sheriffs assigned in the branches of the court. A Sheriff to whom the
case has been raffled shall be excluded in the succeeding raffles and shall
(1)
participate again only after all other Sheriffs shall have been assigned a case by
(2)
P150,000.00 . 500.00
(4)
P200,000.00 . 650.00
(5)
Upon extra-judicial petition for sale under Act 3135 / 1508 filed __________________
P250,000.00 .. 1,000.00
(6)
P300,000.00 .. 1,250.00
attorneys fees and expenses of foreclosure, the undersigned or his duly authorized
(7)
deputy will sell at public auction on (date of sale) _______________ at 10:00 A.M. or
(8)
P500,000.00 .. 1,750.00
(9)
soon thereafter at the main entrance of the ___________ (place of sale) to the highest
bidder, for cash or managers check and in Philippine Currency, the following
property with all its improvements, to wit:
(Description of Property)
All sealed bids must be submitted to the undersigned on the above stated time and
date.
P1,000,000.00.. 10.00
In the event the public auction should not take place on the said date, it shall be
exceed P100,000.00 (A.M. No. 99-10-05-0, March 1, 2001, 2[d]). The amount paid
________________ (date)
SHERIFF
b. (1) In case of foreclosure of real estate mortgage, cause the publication of the notice
of sale by posting it for not less than twenty (20) days in at least three (3) public
places in the municipality or city where the property is situated and if such property
is worth more than four hundred (P400.00) pesos, by having such notice published
once a week for at least three (3) consecutive weeks in a newspaper of general
circulation in the municipality or city (Sec. 3, Act No. 3135, as amended). The
Executive Judge shall designate a regular working day and definite time each week
during which said notice shall be distributed personally by him for publication to
qualified newspapers or periodicals as defined in Sec. 1 of P.D. No. 1079, which
distribution shall be effected by raffle (A.M. No. 01-1-07-SC, Oct. 16, 2001). Unless
otherwise stipulated by the parties to the mortgage contract, the debtor-mortgagor
need not be personally served a copy of the notice of the extra-judicial foreclosure.
For real estate mortgages covering loans not exceeding P100,000.00, exclusive of
interests due and unpaid, granted by rural banks (RA No. 7353, Sec. 6) or thrift
banks (RA No. 7906, Sec. 18),publication in a newspaper shall be dispensed with, it
being sufficient that the notices of foreclosure are posted for a period of sixty (60)
days immediately preceding the public auction in the most conspicuous areas of the
municipal building, the municipal public market, the rural bank, the barangay hall,
and the barangay public market, if any, where the land mortgaged is situated. Proof
of publication shall be accomplished by an affidavit of the Sheriff and shall be
attached to the records of the case.
(2) In case of foreclosure of a chattel mortgage, post the notice for at least ten (10)
days in two (2) or more public places in the municipality where the mortgagor
resides or where the property is situated (Sec. 14, Act No. 1508, as amended).
Sec. 5. Conduct of the extra-judicial foreclosure sale
a. The bidding shall be made through sealed bids which must be submitted to the
Sheriff who shall conduct the sale between the hours of 9 a.m. and 4 p.m. of the
date of the auction (Act 3135, Sec. 4). The property mortgaged shall be awarded to
the party submitting the highest bid and, in case of a tie, an open bidding shall be
conducted between the highest bidders. Payments of the winning bid shall be made
either in cash or in managers check, in Philippine currency, within five (5) days from
notice.
b. The sale must be made in the province in which the real property is situated and,
in case the place within the said province in which the sale is to be made is the
subject of stipulation, such sale shall be made in said place in the municipal building
of the municipality in which the property or part thereof is situated (Act No. 3135, as
amended, Sec. 2);
in case of a chattel mortgage, the sale shall be made at a place in the municipality
where the mortgagor resides or where the property is situated (Sec. 14, Act No.
1508, as amended).
Sec. 6. After the sale, the Clerk of Courts shall collect the appropriate fees
pursuant to Sec. 9(1), Rule 141, as amended by A.M No. 00-2-01-SC, computed on
the basis of the amount actually collected by him, which fee shall not
redeemed.
Sec. 7. In case of foreclosure under Act No. 1508, the Sheriff shall, within thirty
(30) days from the sale, prepare a return and file the same in the Office of the
Registry of Deeds where the mortgage is recorded.
Sec. 8. The Sheriff or the notary public who conducted the sale shall report the
name/s of the bidder/s to the Clerk of Court.
Sec. 9. Upon presentation of the appropriate receipts, the Clerk of Court shall
issue and sign the Certificate of Sale, subject to the approval of the Executive Judge
or, in the latters absence, the Vice-Executive Judge. Prior to the issuance of the
certificate of Sale, the Clerk of court shall, in extra-judicial foreclosure conducted
under the direction of the sheriff, collect P300.00 as provided in Section 20(d), Rule
141, as amended, and in extra-judicial foreclosure sales conducted under the
direction of a notary public, collect the appropriate fees pursuant to Rule 141,
20(e), which amount shall not exceed P100,000.00 (Minute Res., A.M. No. 99-10-050, August 7, 2001).
Sec. 10. After the Certificate of Sale has been issued, the Clerk of Court shall
keep the complete records for a period of one (1) year from the date of registration
of the certificate of sale with the Register of Deeds, after which the records shall be
archived. Notwithstanding the foregoing, juridical persons whose property is sold
pursuant to an extra-judicial foreclosure shall have the right to redeem the property
until, but not later than, the registration of the certificate of foreclosure sale which in
no case shall be more than three (3) months after foreclosure, whichever is earlier
(R.A. 8791, Section 47). In case the property is redeemed, the Clerk of Court shall
assess the redemptioners fee as provided in Section 7 (k), Rule 141, as amended. If
the property is not redeemed, the Clerk of Court shall, as a requisite for the issuance
of the final Deed of Sale, assess the highest bidder the amount of P300.00 as
provided in Section 20(d), Rule 141, as amended.
Sec. 11. These guidelines shall take effect on April 22, 2002.
Issued this 22nd day of January 2002.
institution from the sale and custody of said property less the income derived
therefrom. However, the purchaser at the auction sale concerned whether in a
judicial or extra-judicial foreclosure shall have the right to enter upon and take
possession of such property immediately after the date of the confirmation of the
auction sale and administer the same in accordance with law. Any petition in court
to enjoin or restrain the conduct of foreclosure proceedings instituted pursuant to
this provision shall be given due course only upon the filing by the petitioner of a
bond in an amount fixed by the court conditioned that he will pay all the damages
which the bank may suffer by the enjoining or the restraint of the foreclosure
proceeding. Notwithstanding Act 3135, juridical persons whose property is being
sold pursuant to an extrajudicial foreclosure, shall have the right to redeem the
property in accordance with this provision until, but not after, the registration of the
certificate of foreclosure sale with the applicable Register of Deeds which in no case
shall be more than three (3) months after foreclosure, whichever is earlier. Owners
of property that has been sold in a foreclosure sale prior to the effectivity of this Act
shall retain their redemption rights until their expiration. (78a)