GROUP I CHATTEL MORTGAGE MCQ QUESTIONS John Ferick Casinabe Omar Jayson Vallejera Holden Roy Dal Petros

Absalon Bojo
1. All are subjects of Chattel Mortgage, except: a. Car b. Skyscraper c. Ship Answer: b d. Crops

2. All are characteristics of Chattel Mortgage Contracts, except: a. Accessory b. Formal c. Principal Answer: c 3. The following laws govern Chattel Mortgage, except: a. Act 1508 also known as the Chattel Mortgage Law c. P.D. 1538 also known as the Ship Mortgage Decree Answer: c (The Ship Mortgage Decree is P.D. 1521)

d. Unilateral

b. Revised Penal Code d. Revised Administrative Code

4. Which of the following subject matter of Chattel Mortgage requires being recorded with the Land Transportation Office (LTO) in order to bind third persons? a. Shares of Stock b. Crops c. Large Cattle d. Motor Vehicles Answer: d 5. The following are registration agencies for Chattel Mortgage in order to bind third persons, except: a. Bureau of Lands b. Land Transportation Office c. Registry of Deeds d. Office of the Coast Guard Answer: a 6. Which of the following acts is deemed an offense involving Chattel Mortgage under Article 319 of the Revised Penal Code? a. Knowingly removing personal property mortgaged to any province or city other than the one in which it was located at the time of the execution of the mortgage with the written consent of the mortgagee, or his executors, administrators or assigns. b. Selling or pledging personal property already mortgaged or any part thereof, under the terms of the Chattel Mortgage Law without the consent of the mortgagee written on the back of the mortgage and duly recorded in the Register of Deeds of the province where such property is located. c. Knowingly removing personal property mortgaged to any province or city other than the one in which it was located at the time of the execution of the mortgage. d. Selling or pledging personal property already mortgaged or any part thereof, under the terms of the Chattel Mortgage Law without the consent of the mortgagor written on the back of the mortgage and duly recorded in the Register of Deeds of the province where such property is located. Answer: b

7. The following are effects of registration, except: a. It creates a real right. b. Adds nothing to the mortgage. c. Binds after-acquired properties. d. Registration is essential in order to affect third parties. Non-compliance thereof does not affect the validity of the mortgage, as between the parties. Answer: c 8. The Mortgagee may cause the property to be sold at a public auction upon default and or breach of condition of the mortgage: a. Within 1 month after breach or default b. After 60 days after breach or default c. Within 15 days after breach or default d. After 30 days after breach or default Answer: d 9. What is the effect when the mortgagee obtains a personal judgment against the mortgagor instead of foreclosing the property: a. The mortgagee cannot recover the deficiency. b. It acts as a waiver of right to foreclose the property. c. The mortgagee may file for foreclosure to cover the deficiency. d. The mortgagee may foreclose the future property. Answer: b 10. In the case of PNB vs. Manila Investment & Construction, Inc. (G.R. No. L-27132), the court ruled that there is nothing illegal, immoral or against public order in an agreement for the private sale of personal properties covered by the chattel mortgage. The mortgagor is in estoppel to question it except on the ground of ___________. a. Fraud or Duress b. Breach of Contract c. Public order or Public policy d. Morals or Good Customs Answer: a