1. Article 319 penalizes two acts related to mortgaged personal property without consent: removing the property to another province, and selling or pledging property already mortgaged.
2. The penalty is arresto mayor or a fine twice the property's value.
3. Consent to remove or sell/pledge mortgaged property must be in writing on the mortgage document and recorded with the register of deeds. Without this, the acts violate the law regardless of informing others of the mortgage.
1. Article 319 penalizes two acts related to mortgaged personal property without consent: removing the property to another province, and selling or pledging property already mortgaged.
2. The penalty is arresto mayor or a fine twice the property's value.
3. Consent to remove or sell/pledge mortgaged property must be in writing on the mortgage document and recorded with the register of deeds. Without this, the acts violate the law regardless of informing others of the mortgage.
1. Article 319 penalizes two acts related to mortgaged personal property without consent: removing the property to another province, and selling or pledging property already mortgaged.
2. The penalty is arresto mayor or a fine twice the property's value.
3. Consent to remove or sell/pledge mortgaged property must be in writing on the mortgage document and recorded with the register of deeds. Without this, the acts violate the law regardless of informing others of the mortgage.
Removal, sale or pledge of mortgagee or his executors, administrators, or
mortgaged property. — The penalty or assigns. arresto mayor or a fine amounting to twice 2. By selling or pledging personal property the value of the property shall be imposed already pledged, or any part thereof, under upon: the terms of the Chattel Mortgage Law, 1. Any person who shall knowingly remove without the consent of the mortgagee written any personal property mortgaged under the on the back of the mortgage and noted on the Chattel Mortgage Law to any province or record thereof in the office of the register of city other than the one in which it was deeds of the province where such property is located at the time of the execution of the located. mortgage, without the written consent of Valid and subsisting the mortgagee, or his executors, administrators or assigns. - There must be a valid and subsisting chattel mortgage. 2. Any mortgagor who shall sell or pledge - If the chattel mortgage does not contain personal property already pledged, or any an affidavit of good faith, and is not part thereof, under the terms of the registered, it is void and cannot be the Chattel Mortgage Law, without the consent basis of a criminal prosecution under of the mortgagee written on the back of the Art. 319. mortgage and noted on the record hereof in the office of the Register of Deeds of the Elements of knowingly removing province where such property is located. mortgaged personal property: 1. That personal property is mortgaged under the Chattel Mortgage Law. Object of Article 319 2. That the offender knows that such property - To give necessary sanction to the is so mortgaged. provision of the statute in the interest of the public at large, so in all cases, 3. That he removes such mortgaged personal wherein loans are made and secured property to any province or city other than one under the terms of the statute, the in which it was located at the time of the mortgage debtors may be deterred from execution of the mortgage. the violation of its provisions and the mortgage creditors may be protected 4. That the removal is permanent against loss or inconvenience resulting 5. That there is no written consent of the from the wrongful removal or sale of the mortgagee or his executors, administrators, or mortgaged property. assigns to such removal. Purpose of paragraph no. 1 Is the third person who removed the - Protection of the mortgagee who should property to another province with be able to have a ready access to, and knowledge that it has been mortgaged easy reach of, the property subject of under this article liable? the mortgage. - Yes. The offender is any person who Acts Punishable under Art. 319 knowingly remove the mortgaged personal property to another province 1. Knowingly removing any personal property or city without the written consent of mortgaged under the Chattel Mortgage Law to the mortgagee. any province or city other than one in which it was located at the time of the extension of the The removal of mortgaged personal mortgage, without the written consent of the property must be coupled with intent to fraud. - Otherwise, there is no violation of the - In both offenses there is selling of a law. mortgaged property. - In estafa, under Art. 316 (2) the Elements of selling or pledging personal property is a real property; in the sale of property already pledged mortgaged property, it is personal 1. That personal property is already pledged property. under the terms of the Chattel Mortgage law. - To constitute the crime of estafa, it is sufficient that the real property 2. That the offender, who is the mortgagor of mortgaged be sold as free, even though such property, sells or pledges the same or the vendor may have obtained the any part thereof. consent of the mortgagee in writing. 3. That there is no consent of the mortgagee - Selling or pledging of personal property written on the back of the mortgage and noted already pledged or mortgaged is on the record thereof in the office of the committed by the mere failure to obtain register of deeds. the consent of the mortgagee in writing, even if the offender should inform the House may be subject of chattel mortgage purchases that the thing sold is by agreement of the parties mortgaged. - The purpose of the law in Art. 319 is to - Although a house is generally protect the mortgagee; in Article 316, considered an immovable property, the purpose is to protect the purchaser, therefore being a subject of the real whether the first of the second. estate mortgage, the agreement of the parties, registering the same under Chattel Mortgage Law will not preclude the prosecution under Article 319. Second Chattel mortgage - Article 319 penalizes the mortgagor who sells or pledges a mortgaged property without the consent of the mortgagee. - Spanish text uses: “hipoteca” Consent of the mortagee: 1. In writing, 2. Back of the mortgage 3. Noted on the record thereof in the office of the register of deeds. - If placed on a separate piece of paper, the pledge by the mortgagor is a violation of Article 319. Damage is not necessary - Damage to the mortgagee is not essential. Distinguished from estafa (316) by disposing of encumbered property.