A.M.
NO. 99-10-05-0[March
1,
2001]PROCEDURE
IN EXTRA-JUDICIAL FORECLOSURE OF MORTGAGEEN
BANC
In line with the
responsibility of an Executive Judge under Administrative Order No. 6,
dated June 30, 1975, for the management of courts within his
administrative
area, included in which is the task of supervising the work of the
Clerk
of Court, who is also the Ex-Officio Sheriff, and his staff,
and
the issuance of commissions to notaries public and enforcement of their
duties under the law, the following procedures are hereby prescribed in
extrajudicial foreclosure of mortgages:
1. All
applications
for extra-judicial foreclosure of mortgage whether under the direction
of the sheriff or a notary public, pursuant to Act 3135, as amended by
Act 3135, as amended by Act 4118, and Act 1508, as amended, shall be
filed
with the Executive Judge, through the Clerk of Court who is also Ex-Officio
Sheriff.
2. Upon
receipt of
an application for extra-judicial foreclosure of mortgage, it shall be
the duty of the Clerk of Court to:chanroblesvirtuallawlibrary
(a)
receive and
docket said application and to stamp thereon the corresponding file
number,
date and time of filing;
(b)
collect the filing
fees therefor pursuant to Rule 141, Section 7 (c), as amended by A.M.
No.
00-2-01-SC, and issue the corresponding official receipt;
(c)
examine, in case
of real estate mortgage foreclosure, whether the applicant has complied
with all the requirements before the public auction is conducted under
the direction of the sheriff or a notary public, pursuant to Sec. 4 of
Act 3135, as amended;
(d)
sign and issue
the certificate of sale, subject to the approval of the Executive
Judge,
or in his absence, the Vice-Executive Judge. No certificate of sale
shall
be issued in favor of the highest bidder until all fees provided for in
the aforementioned sections and in Rule 141, Section 9(1) as amended by
A.M. No. 00-2-01-SC, shall have been paid: Provided, that in no
case shall the amount payable under Rule 141, Section 9(1), as amended,
exceed P100,000.00;
(e)
after the certificate
of sale has been issued to the highest bidder, keep the complete
records,
while awaiting any redemption within a period of one (1) year from date
of registration of the certificate of sale with the Register of Deeds
concerned,
after which the records shall be archived.
Where the
application
concerns the extrajudicial foreclosure of mortgages of real estates
and/or
chattels in different locations covering one indebtedness, only one
filing
fee corresponding to such indebtedness shall be collected. The
collecting
Clerk of Court shall, apart from the official receipt of the fees,
issue
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, which
certificate
shall serve the purpose of having the application with the Clerks of
Court
of the places where the other properties are located and of allowing
the
extrajudicial foreclosures to proceed thereat.
3. The
notices of
auction sale in extrajudicial foreclosure for publication by the
sheriff
or by a notary public shall be published in a newspaper of general
circulation
pursuant to Section I, Presidential Decree no. 1079, dated January 2,
1977.
Non-compliance therewith shall constitute a violation of Section 6
thereof.
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.
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.cralaw:red
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 newspaper of
general
circulation not later than February 13, 2001 and furnish copies thereof
to the Integrated Bar of the Philippines.
This Resolution shall
take effect on the 1st day of March of the year 2001.
Enacted this 30th
day of January 2001, in the City of Manila.
Davide, Jr.,
C.J., Bellosilo, Melo, Vitug, Kapunan, Mendoza, Panganiban,
Quisumbing,
Pardo, Buena, Gonzaga-Reyes, Ynares-Santiago, De Leon, Jr., and
Gutierrez,
JJ. concur.
Puno,
J.,
abroad on official business.
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