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GROUP I CHATTEL MORTGAGE MCQ QUESTIONS

John Ferick Casinabe

Omar Jayson Vallejera

Holden Roy Dal

Petros Absalon Bojo

1. All are subjects of Chattel Mortgage, except:a. Car b. Skyscraper c. Ship d. CropsAnswer: b

2. All are characteristics of Chattel Mortgage Contracts, except:a. Accessory b. Formal c. Principal d. UnilateralAnswer: c

3. The following laws govern Chattel Mortgage, except:a. Act 1508 also known as the Chattel Mortgage Law b. Revised Penal Codec. P.D. 1538 also known as the Ship Mortgage Decree d. Revised Administrative CodeAnswer: c (The Ship Mortgage Decree is P.D. 1521)

4. Which of the following subject matter of Chattel Mortgage requires being recorded with the LandTransportation Office (LTO) in order to bind third persons?

a. Shares of Stock b. Crops c. Large Cattle d. Motor VehiclesAnswer: d

5. The following are registration agencies for Chattel Mortgage in order to bind third persons, except:a. Bureau of Lands b. Land Transportation Officec. Registry of Deeds d. Office of the Coast GuardAnswer: a

6. Which of the following acts is deemed an offense involving Chattel Mortgage under Article 319 of theRevised Penal Code?

a. Knowingly removing personal property mortgaged to any province or city other than the one inwhich it was located at the time of the execution of the mortgage with the written consent of the

mortgagee, or his executors, administrators or assigns.

b. Selling or pledging personal property already mortgaged or any part thereof, under the terms ofthe Chattel Mortgage Law without the consent of the mortgagee written on the back of the

mortgage and duly recorded in the Register of Deeds of the province where such property is

located.

c. Knowingly removing personal property mortgaged to any province or city other than the one inwhich it was located at the time of the execution of the mortgage.

d. Selling or pledging personal property already mortgaged or any part thereof, under the terms ofthe Chattel Mortgage Law without the consent of the mortgagor written on the back of the

mortgage and duly recorded in the Register of Deeds of the province where such property is

located.

Answer: b

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7. The following are effects of registration, except:a. It creates a real right.b. Adds nothing to the mortgage.c. Binds after-acquired properties.d. Registration is essential in order to affect third parties. Non-compliance thereof does not affect the

validity of the mortgage, as between the parties.

Answer: c

8. The Mortgagee may cause the property to be sold at a public auction upon default and or breach ofcondition of the mortgage:

a. Within 1 month after breach or defaultb. After 60 days after breach or defaultc. Within 15 days after breach or defaultd. After 30 days after breach or defaultAnswer: d

9. What is the effect when the mortgagee obtains a personal judgment against the mortgagor instead offoreclosing the property:

a. The mortgagee cannot recover the deficiency.b. It acts as a waiver of right to foreclose the property.c. The mortgagee may file for foreclosure to cover the deficiency.d. The mortgagee may foreclose the future property.Answer: b

10.In the case of PNB vs. Manila Investment & Construction, Inc. (G.R. No. L-27132), the court ruled thatthere is nothing illegal, immoral or against public order in an agreement for the private sale of

personal properties covered by the chattel mortgage. The mortgagor is in estoppel to question it

except on the ground of___________.

a.

Fraud or Duressb. Breach of Contractc. Public order or Public policyd. Morals or Good CustomsAnswer: a