Scribd Logo
Upload

Welcome to Scribd!

  • 61 views

    Philippine Refining Co. Vs Jarque

    Uploaded by

    Shanielle Qim Cañeda
    The Philippine Refining Company and Jarque executed three mortgages on two motor vessels as security for loans, but the first two mortgages did not include an affidavit of good faith as required by the Chattel Mortgage Law. Jarque was later declared insolvent. The court ruled that the mortgages were defective because the absence of the affidavit of good faith meant they were unenforceable against creditors and subsequent encumbrances. Under the law, vessels are considered personal property and subject to the same chattel mortgage requirements as other personal property, including the need for an affidavit of good faith.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Philippine Refining Co. Vs Jarque

    Uploaded by

    Shanielle Qim Cañeda
    61 views1 page
    The Philippine Refining Company and Jarque executed three mortgages on two motor vessels as security for loans, but the first two mortgages did not include an affidavit of good faith as required by the Chattel Mortgage Law. Jarque was later declared insolvent. The court ruled that the mortgages were defective because the absence of the affidavit of good faith meant they were unenforceable against creditors and subsequent encumbrances. Under the law, vessels are considered personal property and subject to the same chattel mortgage requirements as other personal property, including the need for an affidavit of good faith.

    Original Description:

    Original Title

    Philippine Refining Co. vs Jarque

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Philippine Refining Company and Jarque executed three mortgages on two motor vessels as security for loans, but the first two mortgages did not include an affidavit of good faith as required by the Chattel Mortgage Law. Jarque was later declared insolvent. The court ruled that the mortgages were defective because the absence of the affidavit of good faith meant they were unenforceable against creditors and subsequent encumbrances. Under the law, vessels are considered personal property and subject to the same chattel mortgage requirements as other personal property, including the need for an affidavit of good faith.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    61 views1 page

    Philippine Refining Co. Vs Jarque

    Uploaded by

    Shanielle Qim Cañeda
    The Philippine Refining Company and Jarque executed three mortgages on two motor vessels as security for loans, but the first two mortgages did not include an affidavit of good faith as required by the Chattel Mortgage Law. Jarque was later declared insolvent. The court ruled that the mortgages were defective because the absence of the affidavit of good faith meant they were unenforceable against creditors and subsequent encumbrances. Under the law, vessels are considered personal property and subject to the same chattel mortgage requirements as other personal property, including the need for an affidavit of good faith.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Philippine Refining Co. vs Jarque G.R. No.

    L-41506 March 25, 1935

    FACTS: Plaintiff Philippine Refining Co. and defendant Jarque executed three mortgages on
    the motor vessels Pandan and Zargazo. The documents were recorded as transfer and
    encumbrances of the vessels for the port of Cebu and each was denominated a chattel
    mortgage.

    The first two mortgages did not have an affidavit of good faith. A fourth mortgage was
    executed by Jarque and Ramon Aboitiz over motorship Zaragoza and was entered in the
    Chattel Mortgage Registry on May 12, 1932, within the period of 30 days prior to the
    foreclosure/institution of the insolvency proceedings.

    Jarque was declared an insolvent with the result that an assignment of all the properties of
    the insolvent was executed in favor of Jose Corominas. However, Judge Jose Hontiveros
    declined to order the foreclosure of the mortgages, and instead, ruled that they were
    defective because they did not have affidavits of good faith.

    Issue: Whether or not the mortgages were defective?

    Ruling: Yes. Vessels are considered personal property under the civil law. They are subject
    to mortgage agreeably to the provisions of the Chattel Mortgage Law. Under the CML, that a
    good chattel mortgage includes an affidavit of good faith. The absence of such affidavit
    makes mortgage unenforceable against creditors and subsequent encumbrances.

    The only difference between a chattel mortgage of a vessel and a chattel mortgage of other
    personality is that it is not now necessary for a chattel mortgage of a vessel to be noted in
    the registry of the register of deeds, but it is essential that a record of documents affecting
    the title to a vessel be entered in the record of the Collector of Customs at the port of entry.
    Otherwise a mortgage on a vessel is generally like other chattel mortgages as to its
    requisites and validity.

    You might also like