AN ACT TO AMEND 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.”
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 herein before 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.”
SECTION 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.”
SECTION 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.
SECTION 4. This Act shall take effect on its approval.
Approved, December 7, 1933
-->
No comments:
Post a Comment