Chattel Mortgage Outline

7/27/2019 Chattel Mortgage Outline

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Choose your partner, create 10 MCQs on the topic including the case (BUT on

the RULING only). I will pick one as usual and use it for the quiz.

A. The Chattel Mortgage Law (Act 1508 in rel. to Arts. 1484, 1485, 2140 and

2141 of the Civil Code)

1. Essential requisites

2. Formal requisites

3. Registration, when and where

4. After-acquired property

5. After-incurred obligation

6. Right of junior mortgagee

7. Foreclosure procedure

8. Redemption

9. Claim for deficiency

a) General rule

b) Exception

c) Article 1484

B. Real Estate Mortgage Law (Act 3135, as amended by R.A. 4118)

1. Coverage

2. Remedies available to mortgagee upon default of the mortgagor

3. Need for special power of attorney

4. Authority to foreclose extrajudicially

5. Procedure

a) Where to file

b) Where to sell

c) Posting requirement

d) Publication requirement

(i) Sufficiency of newspaper publication


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(ii) Need for republication in case of postponement

(iii) Personal notice to the mortgagor when and when not

needed

6. Possession by purchaser of foreclosed property

7. Remedy of debtor if foreclosure is not proper

8. Redemption

a) Who may redeem

b) Amount of redemption price

c) Period for redemption

d) Effect of pendency of action for annulment of sale

9. Writ of possession

a) Ministerial duty of the court

b) Enforcement against third parties

c) Pendency of action for annulment of sale

10. Annulment of sale

General Banking Act, Section 47

Cases: Allied Banking Corp. vs. Mateo, G.R. 167420, June 5, 2009; GC Dalton

vs. EPCIB, G.R. No. 171169, August 24, 2009

Act Number 1508

ACT NO. 1508

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."


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Sec. 2. All personal property shall be subject to mortgage, agreeably to the

provisions of this Act, and a mortgage executed in pursuance thereof shall be

termed chattel mortgage.

Sec. 3. Chattel mortgage defined. A chattel mortgage is a conditional sale

of personal property as security for the payment of a debt, or the

performance of some other obligation specified therein, the condition being

that the sale shall be void upon the seller paying to the purchaser a sum of

money or 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.

Sec. 4. Validity. A chattel mortgage shall not be valid against any person

except the mortgagor, his 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

which the mortgagor resides at the time of making the same, or, if he resides

without the Philippine Islands, in the province in which the property is

situated: Provided, however, That if the property is situated in a different

province from that in which the mortgagor resides, the mortgage shall be

recorded in the office of the register of deeds of both the province in which

the mortgagor resides and that in which the property is situated, and for thepurposes of this Act the city of Manila shall be deemed to be a province.

Sec. 5. Form. A chattel mortgage shall be deemed to be sufficient when

made substantially in 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,

and each mortgagor and mortgagee, or, in the absence of the mortgagee, his

agent or attorney, shall make and subscribe an affidavit in substance as

hereinafter set forth, which affidavit, signed by the parties to the mortgage asabove stated, and the certificate of the oath signed by the authority

administering the same, shall be appended to such mortgage and recorded

therewith.

FORM OF CHATTEL MORTGAGE AND AFFIDAVIT.


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____________________

(Signature of mortgagor.)

"In the presence of

"_________________

"_________________

(Two witnesses sign here.)

FORM OF OATH.

"We severally swear that the foregoing mortgage is made for the purpose of

securing the obligation specified in the conditions thereof, and for no other

purpose, and that the same is a just and valid obligation, and one not entered

into for the purpose of fraud."

FORM OF CERTIFICATE OF OATH.

"At ___________, in the Province of _________, personally appeared ____________,

the parties who signed the foregoing affidavit and made oath to the truth

thereof before me.

"_____________________________"

(Notary public, justice of the peace, 1 or other officer, as the case may be.)

Sec. 6. Corporations. When a corporation is a party to such mortgage the

affidavit required may be made and subscribed by a director, trustee, cashier,

treasurer, or manager thereof, or by a person authorized on the part of such

corporation to make or to receive such mortgage. When a partnership is a

party to the mortgage the affidavit may be made and subscribed by one

member thereof.


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Sec. 7. Descriptions of property. The description of the mortgaged property

shall be such as to enable the parties to the mortgage, or any other person,

after reasonable inquiry and investigation, to identify the same.

If the property mortgaged be large cattle," as defined by section one of Act

Numbered Eleven and forty-seven, 2 and the amendments thereof, the

description of said property in the mortgage shall contain the brands, class,

sex, age, knots of radiated hair commonly known as remolinos, or cowlicks,

and other marks of ownership as described and set forth in the certificate of

ownership of said animal or animals, together with the number and place of

issue of such certificates of ownership.

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 and without delay to harvest the

same, and that in default of the performance of such duties the 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 expenses incurred in caring for,

harvesting, and selling the crop and the amount of the indebtedness or

obligation secured by the mortgage, and the surplus thereof, if any shall be

paid to the mortgagor or those entitled to the same.

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 property originally

mortgaged, anything in the mortgage to the contrary notwithstanding.

Sec. 8. Failure of mortgagee to discharge the mortgage. If the mortgagee,

assign, administrator, executor, or either of them, after performance of the

condition before or after the breach thereof, or after tender of the

performance of the condition, at or after the time fixed for the performance,

does not within ten days after being requested thereto by any person entitled

to redeem, discharge the mortgage in the manner provided by law, the

person entitled to redeem may recover of the person whose duty it is to

discharge the same twenty pesos for his neglect and all damages occasioned

thereby in an action in any court having jurisdiction of the subject-matter

thereof.


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Sec. 9-12. (inclusive) 3

Sec. 13. When the condition of a chattel mortgage is broken, a mortgagor orperson holding a subsequent mortgage, or a subsequent attaching creditor

may redeem the same by paying or delivering to the mortgagee the amount

due on such mortgage and the reasonable costs and expenses incurred by

such breach of condition before the sale thereof. An attaching creditor who so

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.

Sec. 14. Sale of property at public auction; Officer's return; Fees; Dispositionof 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 sentby 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 ofdeeds 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


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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.

Sec. 15. 6, 6a

Sec. 16. This Act shall take effect on August first, nineteen hundred and six.

Enacted, July 2, 1906.

Footnotes

1. Now Municipal judge.

2. Now section 511 of the Administrative Code.

3. Repealed by Act 3815, Article 367 approved December 8, 1930.

4. Now Rule 141, section 7 of the Rules of Court.

5. Now Section 523 of the Administrative Code.

6. Superseded by section 198 of the Administrative Code. The following is

the present text of section 198 as amended by RA 2711, approved June 18,

1960.

"SECTION 198. Registration of chattel mortgages and fees collectible in


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connection therewith. Every register of deeds shall keep a primary entry

book and a registration book for the chattel mortgages; shall certify on each

mortgage filed for record, as well as on its duplicate, the date, hour, and

minute when the same was by him received; and shall record in such books

any chattel mortgage, assignment, or discharge thereof, and any other

instruments relating to a recorded mortgage, and all such instruments shallbe presented to him in duplicate, the original to be filed and the duplicate to

be returned to the person concerned.

"The recording of a mortgage shall be effected by making an entry, which

shall be given a correlative number, setting forth the names of the

mortgagee, and the mortgagor, the sum or obligation guaranteed, date of the

instrument, name of the notary before whom it was sworn to or

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 recording of other instruments

relating to a recorded mortgage shall be effected by way of annotations on

the space provided therefor in the registration book, after the same shall

have been entered in the primary entry book.

"The register of deeds shall also certify the officer's return of sale upon any

mortgage, making reference upon the record of such officer's return to the

volume and page of the record of the 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 mortgage officer's return of sale or discharge of mortgage; and

upon any other instrument relating to such a recorded mortgage, both on the

original and on the duplicate, the date, hour, and minute when 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 inspection.

"Duly certified copies of such records and of filed instruments shall bereceivable as evidence in any court.

"The register of deeds shall collect the following fees for services rendered by

him under this section:


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"(a) For entry or presentation of any document in the primary entry book, one

peso. Supporting papers presented together with the principal document

need not be charged any entry or presentation fee unless the party in interest

desires that they be likewise entered.

"(b) For filing and recording each chattel mortgage, including the necessary

certificates and affidavits, the fees established in the following schedule shall

be collected:

"1. When the amount of the mortgage does not exceed six thousand pesos,

three pesos and fifty centavos for the first five hundred pesos or fractional

part thereof, and one peso and fifty centavos for each additional five hundredpesos or fractional part thereof.

"2. When the amount of the mortgage is more than six thousand pesos but

does not exceed thirty thousand pesos, twenty-four pesos for the initial

amount not exceeding eight thousand pesos, and four pesos for each

additional two thousand pesos or fractional part thereof.

"3. When the amount of the mortgage is more than thirty thousand pesos but

does not exceed one hundred thousand pesos, seventy-five pesos for the

initial amount not exceeding thirty-five thousand pesos, and seven pesos for

each additional five thousand pesos or fractional part thereof.

"4. When the amount of the mortgage is more than one hundred thousand

pesos but does not exceed five hundred thousand pesos, one hundred and

seventy-six pesos for the initial amount not exceeding one hundred ten

thousand pesos, and ten pesos for each additional ten thousand pesos orfractional part thereof.

"5. When the amount of the mortgage is more than five hundred thousand

pesos, five hundred eighty-one pesos for the initial amount not exceeding five

hundred twenty thousand pesos, and fifteen pesos for each additional twenty


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thousand pesos or fractional part thereof: Provided, however, That

registration of the mortgage in the province where the property is situated

shall be sufficient registration: And provided, further, That if the mortgage is

to be registered in more than one city or province, the register of deeds of

the city or province where the instrument is first presented for registration

shall collect the full amount of the fees due in accordance with the scheduleprescribed above, and the register of deeds of the other city or province

where the same instrument is also to be registered shall collect only a sum

equivalent to twenty per centum of the amount of fees due and paid in the

first city or province, but in no case shall the fees payable in any registry be

less than the minimum fixed in said schedule.

"(c) For recording each instrument of sale, conveyance, or transfer of the

property which is subject of a recorded mortgage, or of the assignment of

mortgage credit, the fees established in the preceding schedule shall becollected on the basis of ten per centum of the amount of the mortgage or

unpaid balance thereof: Provided, That the latter is stated in the instrument.

"(d) For recording each notice of attachment, including the necessary index

and annotations, four pesos.

"(e) For recording each release of mortgage, including the necessary index

and references, the fees established in the schedule under paragraph (b)

above shall be collected on the basis of five per centum of the amount of the

mortgage.

"(f) For recording each release of attachment, including the proper

annotations, two pesos.

"(g) For recording each sheriff's return of sale, including the index andreferences, three pesos.

"(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 mortgage, three pesos.


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"(i) For recording each instrument or order relating to a recorded mortgage,

including the necessary index and references, for which no specific fee is

provided above, two pesos.

"(j) For certified copies of records, such fees as are allowed by law for copies

kept by the register of deeds.

"(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 firsttwo hundred words."

Republic Act 4118 Ammended Act Number 3135

REPUBLIC ACT No. 4118

AN ACT CONVERTING CERTAIN PARCELS OF LAND IN THE CITY OF MANILA,

WHICH IS RESERVED AS COMMUNAL PROPERTY, INTO DISPOSABLE OR

ALIENABLE LAND OF THE STATE AND PROVIDING FOR ITS SUBDIVISION AND

SALE.

Section 1. Lot 1-B-2B of Block 557 of the cadastral survey of the City of

Manila, situated in the District of Malate, City of Manila, which is reserved as

communal property, is hereby converted into disposable or alienable land of

the State, to be placed under the disposal of the Land Tenure Administration.The Land Tenure Administration shall subdivide the property into small lots,

none of which shall exceed one hundred and twenty square meters in area

and sell the same on installment basis to the tenants or bona fide occupants

thereof and to individuals, in the order mentioned: Provided, That no down

payment shall be required of tenants or bona fide occupants who cannot

afford to pay such down payment: Provided, further, That no person can


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purchase more than one lot: Provided, furthermore, That if the tenant or bona

fide occupant of any given lot is not able to purchase the same, he shall be

given a lease from month to month until such time that he is able to purchase

the lot: Provided, still further, That in the event of lease, the rentals which

may be charged shall exceed eight per cent per annum of the assessed value

of the property leased: And provided, finally, That in fixing the price of eachlot, which shall not exceed twenty pesos per square meter, the cost of

subdivision and survey shall not be included.

Section 2. Upon approval of this Act, no ejectment proceedings against any

tenant or bona fide occupant of the above lots shall be instituted and any

ejectment proceedings pending in court against any such tenant or bona fide

occupant shall be dismissed upon motion of the defendant: Provided, That

any demolition order directed against any tenant or bona fide occupant

thereof shall be lifted.

Section 3. Upon approval of this Act, if the tenant or bona fide occupant is in

arrears in the payment of any rentals, the amount legally due shall be

liquidated and shall be payable in twenty-four equal monthly installments

from the date of liquidation.

Section 4. No property acquired by virtue of this Act shall be transferred, sold,

mortgaged, or otherwise disposed of within a period of five years from the

date full ownership thereof has been vested in the purchaser without the

consent of the Land Tenure Administration.

Section 5. In the event of the death of the purchaser prior to the complete

payment of the price of the lot purchased by him, his widow and children

shall succeed in all his rights and obligations with respect to his lot.

Section 6. The Chairman of the Land Tenure Administration, shall implement

and issue such rules and regulations as may be necessary to carry out the

provisions of this Act.

Section 7. The sum of one hundred fifty thousand pesos is appropriated out of


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any funds in the National Treasury not otherwise appropriated, to carry out

the purposes of this Act.

Section 8. All laws or parts of laws inconsistent with this Act are repealed or

modified accordingly.

Section 9. This Act shall take effect upon its approval.

Approved: June 20, 1964

Act Number 3135

REPUBLIC ACT NO. 3135

AN ACT REVISING ACT NUMBERED THIRTY-TWO HUNDRED SIXTY-TWO,

OTHERWISE KNOWN AS THE CHARTER OF THE PHILIPPINE AMATEUR ATHLETIC

FEDERATION.

Section 1. Short title. This Act shall be known as the Revised Charter of the

Philippine Amateur Athletic Federation.

Sec. 2. Original Creation and membership of the Philippine Amateur Athletic

Federation. Manuel L. Quezon, Camilo Osias, Alejandro Albert, H. A. Bordner,

R. S. Fitz, Kenneth Rowntree, Regino R. Ylanan, Jorge R. Varga, E. S. Turner, V.

Buencamino, C. J. Bott, Joaquin Alviar, Fred O. England, C. Preysler, Gabriel

Ubago Geo, R. Summers, Martin Eiguren, Damaso Garcia Bosque, J. A.

Murphy, W. N. Bartholomew, Silvestre Torres, Theo S. Hall, C. John, R. R.

Garcia, P. Dulay, H. L. Noble, J. Truitt Maxwell, Vicente Wenceslao, Adam C.

Dorkum, and their successors in interest and the National Sports' Associations

hereinafter provided are hereby created a body corporate and public in the

Philippines, to be known as the "Philippine Amateur Athletic Federation" with

such corporate powers as may be necessary to carry out the purposes of the

Act.


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Section 3. Purposes of the Corporation. The purposes of this corporation are:

(a) to encourage physical education and fitness; (b) to promote and improve

athletic sports among amateurs; (c) to establish and maintain a uniform test

of amateur standing and uniform rules for the government of all athleticsports; (d) to develop the spirit of sportsmanship and fair play; and (e) to

encourage and promote the establishment of sports centers, public

playgrounds and recreational facilities.

Sec. 4. Board of Governors; Composition. The Philippine Amateur Athletic

Federation shall have a Board of Governors to be composed of all surviving

incorporators and three representatives from each National Sports'

Association recognized by the Philippine Amateur Athletic Federation:

Provided, however, That no representative of any National Sports' Associationshall represent more than one association in the Board.

Sec. 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;


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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.

Sec. 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.

Sec. 7. Officers of the Corporations. The Philippine Amateur Athletic

Federation shall have a President, a first and a second Vice-President, and an

executive secretary-treasurer. The officers shall be elected by the Board from

among its members with the exception of the President and the exclusive

secretary-treasurer who may or may not be members of the board: Provided,

however, That the President and the executive secretary-treasurer must be

persons who are known for their dedication to sports in general.

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.

Sec. 8. Executive committee. There shall be an executive committee which

shall be composed of the President, the two Vice-Presidents, and the

executive secretary-treasurer of the federation, one representative from each

National Sports' Association to be appointed by each association from among

its representatives in the Board of Governors, and three members-at-large to


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be selected by the executive committee, one from the Senate, one from the

House of Representatives and one from the Office of the President. The

executive committee may at its discretion select two additional members-at-

large from the general public.

The National Sports' Association to which the President of the Federation

belongs shall appoint another representative to represent it in the executive

committee.

Section 9. Powers, functions and duties of executive committee. The

executive committee shall have the following powers, functions and duties:

1. To implement all the policies and decisions laid down by the Board of

Governors;

2. To prepare an annual budget and submit the same for the approval of

the Board of Governors at the annual meeting;

3. To coordinate and harmonize the activities of all National Sports'

Associations;

4. To administer the common properties and stadia of the Philippine

Amateur Athletic Federation and assist in the maintenance of existing athletic

facilities in regional sports centers, subject to the conditions that it may

impose;

5. To adopt such rules and regulations as may be necessary for thedischarge of its functions and consistent herewith;

6. To maintain, enforce, and defend the exclusive right of the federation to

the use of the work "The Olympic", Olympic shield, all Olympic insignia, and

all other Philippine Sports' insignia that it or the National Sports' Associations


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may design and prescribe for use by Filipino Athletes of whatever nature, and

to confine their use to activities and publicity concerned with the Olympic

games, and with the purposes, powers, and procedures of the federation;

7. To act and decide on all appeals brought before it regarding

controversies on the amateur status of athletes and teams, as well as those

arising between members of the federation and between the associations and

their members; and

8. To encourage and promote the establishment of sports centers, public

playgrounds and recreational facilities.

Sec. 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.

Sec. 11. National Sports' Association; organization and recognition. A National

Association shall be organized for each individual sports in the Philippines in

the manner hereinafter provided to constitute the Philippine Amateur AthleticFederation.

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 by-laws 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


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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.

Sec. 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.

Sec. 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.

Sec. 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;

2. To raise funds by donations, benefits, and other means for their

purposes;

3. To purchase, sell, lease or otherwise encumber property both real and

personal, for the accomplishment of their purpose;

4. To affiliate with international or regional sports' Association after due


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consultation with the executive committee;

5. To conduct local, interport and international competitions, other than the

Olympic and Asian Games, they may deem necessary for the promotion of

the sport;

6. To render an annual report to the executive committee regarding their

finances and activities which shall be submitted at least thirty days before

the annual meeting of the Board of Governors;

7. To appoint their representatives to the Board of Governors and the

executive committee;

8. To decide, subject to appeal to the executive committee, all questions on

the amateur status and discipline of the athletes connected with the

associations, as well as the members thereof and all disputes between their

members;

9. To adopt a training program for the development of athletes and their

preparation for international competitions and to defray the expenses for the

same;

10. To select the athletes, coach, and other officials for their national teams

taking into consideration not only their athletic abilities but also their moral

character.

11. To keep accurate records of all official marks attained by the athletes inthe associations in all competitions as well as all results of sports

competitions, recognize and ratify the same, and furnish copies thereof to the

executive committee;

12. To qualify and license referees and umpires and other game officials


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who shall officiate in competitions in their respective sports; and

13. To perform such other acts as may be necessary for the proper

accomplishment of their purposes and not inconsistent with this Act.

Sec. 15. Restriction on holding of office. No person shall be eligible for

election as president or as the head of more than one National Sports'

Association.

Sec. 16. Formation of National Olympic Committee. The National Olympic

Committee shall be composed of the members of the executive committee

whose sports are included in the Olympic program, the three membersrepresenting the Senate, the House of Representatives and the Office of the

President, and the representative of the International Olympic Committee.

This committee shall function in accordance with the rules of the International

Olympic Committee.

Sec. 17. Business location. The Philippine Amateur Athletic Federation and all

National Sports' Association organized hereunder shall have their principal

place of business either in Manila or Quezon City.

Sec. 18. Properties and funds of the Philippine Amateur Athletic Federation.

The properties and funds of the Federation shall be of two kinds, namely,

common and particular.

Common funds and properties are such monies and real or personal

properties that belong to the Philippine Amateur Athletic Federation for

general use by the members thereof.

Common properties of the federation comprise the Rizal Memorial Stadia and

such other real and personal properties owned and operated by the Philippine

Amateur Athletic Federation created under Act Numbered Thirty-two hundred

sixty-two, and those which the federation may acquire hereafter. Common

funds of the federation comprise the following:


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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.

Sec. 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.

Sec. 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


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Association making the contribution.

Particular funds of the National Sports' Associations shall be expended for the

accomplishment of their respective purposes.

Sec. 21. Use of facilities. Subject to regulations of the federation, its

playgrounds and stadia shall be available for the use of the association and

their members in preference to all others and, for such use, they shall be

charged a rental to be determined by the executive committee.

Sec. 22. Exemption of income and properties from taxes. Any laws to the

contrary notwithstanding, all income, properties, and importation of sportsequipment 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.

Sec. 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 organizationengaged 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.

Sec. 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;


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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.

Sec. 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.

Sec. 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 provisionto other persons or circumstances shall not be affected thereby.

Sec. 28. This Act shall take effect upon its approval.

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