Section 1. Section six of Act Numbered Thirty-one hundred and
thirty-five, entitled "An Act to regulate the sale of property under
special powers inserted in or annexed to real-estate mortgages," is
hereby amended to read as follows:
"Section 6. In
all cases in which an extrajudicial sale is made under the special
power hereinbefore referred to, the debtor, his successors in interest
or any judicial creditor or judgment creditor of said debtor, or any
person having a lien on the property subsequent to the mortgage or deed
of trust under which the property is sold, may redeem the same at any
time within the term of one year from and after the date of the sale;
and such redemption shall be governed by the provisions of sections
four hundred and sixty-four to four hundred and sixty-six, inclusive,
of the Code of Civil Procedure, in so far as these are not inconsistent
with the provisions of this Act."
Sec. 2. The following three sections are hereby
inserted after section six of said Act Numbered Thirty-one hundred and
thirty-five:
"Section 7. In
any sale made under the provisions of this Act, the purchaser may
petition the Court of First Instance of the province or place where the
property or any part thereof is situated, to give him possession
thereof during the redemption period, furnishing bond in an amount
equivalent to the use of the property for a period of twelve months, to
indemnify the debtor in case it be shown that the sale was made without
violating the mortgage or without complying with the requirements of
this Act. Such petition shall be made under oath and filed in form of
an ex parte motion in the registration or cadastral proceedings if the
property is registered, or in special proceedings in the case of
property registered under the Mortgage Law or under section one hundred
and ninety-four of the Administrative Code, or of any other real
property encumbered with a mortgage duly registered in the office of
any register of deeds in accordance with any existing law, and in each
case the clerk of the court shall, upon the filing of such petition,
collect the fees specified in paragraph eleven of section one hundred
and fourteen of Act Numbered Four hundred and ninety-six, as amended by
Act Numbered Twenty-eight hundred and sixty-six, and the court shall,
upon approval of the bond, order that a writ of possession issue,
addressed to the sheriff of the province in which the property is
situated, who shall execute said order immediately.
"Section 8. The debtor may, in the proceedings in
which possession was requested, but not later than thirty days after
the purchaser was given possession, petition that the sale be set aside
and the writ of possession cancelled, specifying the damages suffered
by him, because the mortgage was not violated or the sale was not made
in accordance with the provisions hereof, and the court shall take
cognizance of this petition in accordance with the summary procedure
provided for in section one hundred and twelve of Act Numbered Four
hundred and ninety-six; and if it finds the complaint of the debtor
justified, it shall dispose in his favor of all or part of the bond
furnished by the person who obtained possession. Either of the parties
may appeal from the order of the judge in accordance with section
fourteen of Act Numbered Four hundred and ninety-six; but the order of
possession shall continue in effect during the pendency of the appeal.
"Section 9. When the property is redeemed after the
purchaser has been given possession, the redeemer shall be entitled to
deduct from the price of redemption any rentals that said purchaser may
have collected in case the property or any part thereof was rented; if
the purchaser occupied the property as his own dwelling, it being town
property, or used it gainfully, it being rural property, the redeemer
may deduct from the price the interest of one per centum per month
provided for in section four hundred and sixty-five of the Code of
Civil Procedure."
Sec. 3. The number of the present section seven of
said Act Numbered Thirty-one hundred and thirty-five is hereby changed,
making it section ten.
Sec. 4. This Act shall take effect on its approval.
Approved: December 7, 1933
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