Contracts

CHATTEL MORTGAGE

This Chattel Mortgage Agreement ("Agreement") is made and executed this [Day] of [Month, Year], at [Place of Execution], by and between:

[MORTGAGOR’S FULL NAME], of legal age, [civil status], [nationality], and residing at [Mortgagor’s Address], hereinafter referred to as the "MORTGAGOR";

AND

[MORTGAGEE’S FULL NAME], of legal age, [civil status], [nationality], and residing at [Mortgagee’s Address], hereinafter referred to as the "MORTGAGEE";

WITNESSETH, that:

WHEREAS, the MORTGAGOR has obtained a loan from the MORTGAGEE in the amount of PHP [Amount in Words] ([PHP Amount in Numbers]), and as security for the repayment of said loan, the MORTGAGOR agrees to mortgage certain movable property in favor of the MORTGAGEE;

WHEREAS, the Parties desire to enter into this Chattel Mortgage Agreement to formalize their agreement and define their respective rights and obligations;

NOW, THEREFORE, for and in consideration of the foregoing and the mutual covenants herein contained, the Parties agree as follows:

1. LOAN AND MORTGAGE

1.1. The MORTGAGOR hereby acknowledges receiving a loan from the MORTGAGEE in the amount of PHP [Amount], which shall be payable under the terms set forth in this Agreement.
1.2. As security for the payment of the loan, the MORTGAGOR hereby irrevocably mortgages the following movable property in favor of the MORTGAGEE:

• Type of Property: [e.g., Motor Vehicle, Equipment, Machinery, etc.]

• Make/Model: [e.g., Toyota Fortuner, Ford Ranger, etc.]

• Engine No.: [If applicable]

• Chassis No.: [If applicable]

• Plate No.: [If applicable]

• Serial No.: [If applicable]

• Other Details: [Additional description, e.g., year model, specifications, condition]

1.3. The MORTGAGOR warrants full ownership of the mortgaged property and that it is free from liens or adverse claims, except for this Chattel Mortgage.

2. PAYMENT TERMS

2.1. The MORTGAGOR agrees to repay the loan in [Number] equal monthly installments of PHP [Amount], starting on [Start Date] and ending on [End Date], or until full repayment is made.
2.2. The loan shall bear an interest rate of [Interest Rate] per annum, payable together with the principal.
2.3. Payments shall be made via [Mode of Payment, e.g., bank deposit, post-dated checks, online transfer], to the MORTGAGEE’s designated account.

3. DEFAULT AND REMEDIES

3.1. If the MORTGAGOR fails to pay any installment for a period of [Number] consecutive months, the MORTGAGEE shall have the right to:

• Declare the entire loan balance immediately due and payable.

• Take possession of the mortgaged property without need for court action.

• Sell the property at public or private sale and apply the proceeds to the loan balance.

• Recover any legal fees or costs incurred in enforcing this Agreement.

3.2. If the mortgaged property is sold due to foreclosure, any excess proceeds after satisfying the loan shall be returned to the MORTGAGOR.

4. POSSESSION AND USE OF MORTGAGED PROPERTY

4.1. The MORTGAGOR shall retain possession of the mortgaged property and may continue to use and enjoy the same, provided all loan obligations are met.
4.2. The MORTGAGOR shall not sell, transfer, lease, or encumber the mortgaged property without prior written consent from the MORTGAGEE.

5. INSURANCE REQUIREMENTS

5.1. The MORTGAGOR shall insure the mortgaged property against loss, damage, or destruction, with the MORTGAGEE named as the primary beneficiary of the insurance policy.
5.2. The MORTGAGOR shall provide proof of insurance coverage within [Number] days from the signing of this Agreement.

6. OBLIGATIONS OF THE MORTGAGOR

The MORTGAGOR agrees to:
6.1. Keep the mortgaged property in good condition and working order.
6.2. Promptly pay all taxes, registration fees, and other obligations related to the property.
6.3. Allow the MORTGAGEE or authorized representatives to inspect the property at reasonable times.
6.4. Immediately inform the MORTGAGEE in case of loss, theft, damage, or legal claims on the property.

7. RELEASE OF MORTGAGE

7.1. Upon full payment of the loan, the MORTGAGEE shall execute a Release of Chattel Mortgage, which the MORTGAGOR may register with the appropriate government agency.
7.2. The MORTGAGOR shall be responsible for all fees and costs associated with the release of the mortgage annotation.

8. GOVERNING LAW AND DISPUTE RESOLUTION

8.1. This Agreement shall be governed by the laws of the Republic of the Philippines, particularly the Chattel Mortgage Law (Act No. 1508).
8.2. Any disputes shall first be resolved amicably. If unresolved, disputes shall be submitted to the proper courts in [City/Province], Philippines.

9. GENERAL PROVISIONS

9.1. Binding Effect – This Agreement shall be binding upon the Parties, their heirs, successors, and assigns.
9.2. Severability – If any provision is found invalid, the remaining provisions shall remain in full force and effect.
9.3. Entire Agreement – This Agreement represents the full understanding between the Parties.

IN WITNESS WHEREOF, the Parties have hereunto affixed their signatures this [day] of [month, year], at [place of execution].

SIGNED BY:

[MORTGAGOR’S NAME]

Mortgagor

[MORTGAGEE’S NAME]

Mortgagee

With Marital Consent:

[NAME OF MORTGAGOR'S SPOUSE]

(If applicable, i.e. property is subject to the regime of community property or conjugal partnership of gains.)

SIGNED IN THE PRESENCE OF:

[Witness 1 Name]

Witness

[Witness 2 Name]

Witness

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES
[Province/City/Municipality]) S.S.

BEFORE ME, a Notary Public for and in [Location], this ___ day of [month, year], personally appeared:

1. [Mortgagor’s Name], identified through [Government ID Type & Number], issued on [Date]; 

2. [Name of Mortgagor’s Spouse], identified through [Government ID Type & Number], issued on [Date]; and

3. [Mortgagee’s Name], identified through [Government ID Type & Number], issued on [Date],

both known to me to be the same persons who executed the foregoing Real Estate Mortgage, and acknowledged that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL this ___ day of [month], [year], at [place of notarization], Philippines.

NOTARY PUBLIC

Doc. No. ____________
Page No. ____________
Book No. ____________
Series of [YEAR].