CIRCULAR
NO. 1-00
TO: ALL
EXECUTIVE
JUDGES AND CLERKS OF COURTS OF THE REGIONAL TRIAL COURTS
SUBJECT:
PROCEDURE
IN EXTRA-JUDICIAL FORECLOSURE OF MORTGAGE.
For the information
and guidance of all concerned, quoted hereunder is the Resolution of
the
Court En Banc dated December 14, 1999 in Administrative Matter
No.
99-10-05-0 Re: Procedure in Extra-Judicial Foreclosure of Mortgage.
"A.M.
No. 99-10-05-0
Re: Procedure in Extra-Judicial Foreclosure of Mortgage.
"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 directly 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
extra-judicial
foreclosure of mortgage:chanroblesvirtuallawlibrary
"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 4118, and Act 1508, as amended, shall be filed with the Executive
Judge,
through the Clerk of Court who is also the 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 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;
(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 extra-judicial 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 mortgages and their respective locations, which
certificate
shall serve the purpose of having the application docketed with the
Clerks
of Court of the places where the other properties are located and of
allowing
the extrajudicial foreclosure to proceed thereat.
"3. The
notices
of auction sale in extra-judicial foreclosure for publication by the
sheriff
or by a notary public shall be published in a newspaper of general
circulation
pursuant to Section 1, Presidential Decree No. [1079], dated January
26,
1977, and 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 Sheriff IV assigned in the branches.cralaw:red
"5. No
auction sale
shall be held unless there are at least two (2) participating bidders,
otherwise the sale shall be postponed to another date. If on the new
date
set for the sale there shall not be at least two bidders, the sale
shall
then proceed. The names of the bidders 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.
"This
Resolutions
amends or modifies accordingly Administrative Order No. 3 issued by the
then Chief Justice Enrique M. Fernando on 19 October 1984 and Administrative
Circular No. 3-98 issued by [then] Chief Justice Andres R. Narvasa
on 5 February 1998.cralaw:red
"The Court
Administrator
may issue the necessary guidelines for the effective enforcement of
this
Resolution.cralaw:red
"The Clerk
of Court
shall cause the publication of this Resolution in a newspaper of
general
circulation not later than 27 December 1999 and furnish copies to the
Integrated
Bar of the Philippines.cralaw:red
"This
Resolution
shall take effect on the fifteenth day of January of the year 2000.cralaw:red
"Enacted
this 14th
day of December 1999 in the City of Manila."
January 3,
2000.
[Sgd.]
ALFREDO
L. BENIPAYOCourt
Administrator
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