Scribd
Upload
214 views4 pages

Chattel Mortgage: Pull-Out, Safekeeping, Disposal and Application of Proceeds

1. The document outlines the process for pulling out, safekeeping, disposing, and applying proceeds from chattel mortgages. 2. It details the forms and documents used at each stage as well as the responsible personnel. 3. Key steps include issuing a notice of redemption, reappraising and auctioning the item if not redeemed, cancelling the mortgage and applying any proceeds according to the outlined priority.

Uploaded by

Jan Roots
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
214 views4 pages

Chattel Mortgage: Pull-Out, Safekeeping, Disposal and Application of Proceeds

1. The document outlines the process for pulling out, safekeeping, disposing, and applying proceeds from chattel mortgages. 2. It details the forms and documents used at each stage as well as the responsible personnel. 3. Key steps include issuing a notice of redemption, reappraising and auctioning the item if not redeemed, cancelling the mortgage and applying any proceeds according to the outlined priority.

Uploaded by

Jan Roots
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

CHATTEL MORTGAGE: PULL-OUT, SAFEKEEPING, DISPOSAL AND

APPLICATION OF PROCEEDS

PULL-OUT AND SAFEKEEPING OF VEHICLE


Payment Ledger
Voluntary Surrender Agreement
DOCUMENTS USED Notice of Redemption
Unit Pull-Out Form
Logbook (Unit In and Out)
RESPONSIBLE
PROCESS
PERSON
1. Pull-out Mortgage Vehicle/Equipment/Machinery/Appliances

 Issues Voluntary Surrender Agreement form to the mortgagor,


signed by the latter as he agree to surrender voluntarily his
mortgaged vehicle to settle his obligation as a principal borrower
or as a co-maker.

 1st Copy – Issue to Mortgagor


 2nd Copy – File in Client’s Folder

 Issues Notice of Redemption Letter along with VSA to the


Mortgagor.

 1st Copy – Issue to Mortgagor


DO
 2nd Copy – File in Client’s Folder

 The client is given 30 days grace period to redeem


the unit/item.

 Furnishes Unit Pull-Out Form upon pull-out.

 1st Copy – Issue to Mortgagor


 2nd Copy – File in Client’s Folder
 3rd Copy – Provide to BM for filing and monitoring
 4th Copy – Attach to Unit

 Files in the folder the copies of forms issued to client.

DS  Accompany the Account Officer in the are to pull-out the


unit/item.
 Ensures that all necessary forms/documents are signed by the
client before leaving the area.
 Signs on the documents issued to clients.
 Endorses to BM the units/items pulled-out for acknowledgement
and monitoring.
 Acknowledges the pulled-out unit and its corresponding
documents.
 Signs on the documents issued to client.

2. Safekeeping of units/items pulled-out

 Facilitates the safekeeping of the unit in the branch (for


appliances), in the Garage Area (for Vehicles, Machineries and
BM Equipments). If there is no available Garage Area, for the
meantime, pending the provision of garage area, safekeep the
unit at the house or boarding house of one of the AS or BM.
 If there is no garage area, finds a vacant lot to be rented.
 Requests for building of garage.
 Maintains a logbook to record when was the unit/item deposited
in the garage, when was the unit released from the garage and
its corresponding purpose.

 Visits the unit at the garage area twice a week to ensure its
DO
cleanliness and safety.

DISPOSAL OF VEHICLE AND APPLICATION OF PROCEEDS


Appraisal Form
OR/CR
DOCUMENTS USED Release of Mortgage (ROM)
Deed of Sale (DOS)
Notice of Sale
RESPONSIBLE
PROCESS
PERSON
1. Disposal of Unit/Item

 If after 30 days grace period, the client did not able to settle
his/her obligation, issues Notice of Sale to client to inform the
DO latter of that his/her unit is already due for public auction and
that his/her redemption period of 30 days has already expired.

 Re-appraises the unit to get its resale value.

 Reviews the appraisal of units/items made by the Development


Officer.
DS
 Initially approves the appraisal and endorses it to BM for final
approval.
BM  Check the appraisal of the units/items if approvable or not.
 If approved, signs on the appraisal form.
If approved:

 At least 10 days notice of the time, day, place, and purpose


of such sale has been posted at 2 or more public places in
such Municipality.
DO
 Personal  notice  or  mail  shall also  be  given  to the
persons holding subsequent mortgages of the time and
place of sale.

2. Auction Sale:

 Branch Personnel shall be in no case take part in the Auction


Sale to avoid conflict of Interest.
 The established resale value must be the starting price of the
unit.
 The highest bidder will get the unit/item

 When there is already a completed sale transaction, issues


official receipt for the cash received.
Admin Assistant  Executes Deed of Sale between CFI and the buyer for
notarization.

DO 3. Cancellation of Mortgage (COM):

Upon completed sale transaction (i.e. Buyer already paid in cash


or the buyer’s check is cleared at the bank):

 Prepares the ledger of the client and OR/CR of the unit.


 Attaches one (1) set of Chattel Mortgage on the ledger.
 Prepares and prints out one set of COM for checking.
 Submits to BM/DS initial print-out with attachment of ledger and
Chattel Mortgage
 After checking of BM and DS, prints out remaining 3 sets of
COM.
 Routes the COM back to BM and DS for signature and to Admin
Clerk and Admin Assistant as Witnesses.
 Gathers back signed COM and have it signed by the
Mortgagor.
 After the Mortgagor signed the COM, send it to legal department
for notarization.
 Gathers all notarized COM and files it in Alphabetical letter for
easy and convenient access when buyer claims it.

 When the buyer claims their COM, attach the original


Admin Clerk
OR/CR of the unit and 1 set of Chattel Mortgage. Record in
the logbook the name of the receiver, date of receipt and file
remaining copies in the mortgagor’s/cleint’s folder.

 Checks the COM together with attached documents.


DS/BM
 Signs on the COM and sends it back to AO.
4. Application of Proceeds of Foreclosure

 Informs the client/mortgagor of the proceeds of sale.


 Attaches photocopy of Deed of Sale entered between the
buyer, photocopy of the Official Receipt given to the buyer.
 Informs the mortgagor/client of the application of proceeds
which are as follows:

 Obligation  itself.    Pay  first  the  interest  and  then  the


AO
principal.  If there is penalty, then pay it first.
 Junior encumbrances
 Owner

 If the proceeds are not enough, collect form the


client/mortgagor the remaining balance of the obligation.
 If the proceeds is more than th remaining balance of the
obligation, returns the excess to the mortgagor or client.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy