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Chattel Mortgage Outline
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Transcript of 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.