Choose your partner, create 10 MCQs on the topic including the case (BUT on the RULING only).

I will pick one as usual and use it for the quiz. A. The Chattel Mortgage Law (Act 1508 in rel. to Arts. 1484, 1485, 2140 and 2141 of the Civil Code) 1. Essential requisites 2. Formal requisites 3. Registration, when and where 4. After-acquired property 5. After-incurred obligation 6. Right of junior mortgagee 7. Foreclosure procedure 8. Redemption 9. Claim for deficiency a) General rule b) Exception c) Article 1484 B. Real Estate Mortgage Law (Act 3135, as amended by R.A. 4118) 1. Coverage 2. Remedies available to mortgagee upon default of the mortgagor 3. Need for special power of attorney 4. Authority to foreclose extrajudicially 5. Procedure a) Where to file b) Where to sell c) Posting requirement d) Publication requirement (i) Sufficiency of newspaper publication

(ii) Need for republication in case of postponement (iii) Personal notice to the mortgagor when and when not needed 6. Possession by purchaser of foreclosed property 7. Remedy of debtor if foreclosure is not proper 8. Redemption a) Who may redeem b) Amount of redemption price c) Period for redemption d) Effect of pendency of action for annulment of sale 9. Writ of possession a) Ministerial duty of the court b) Enforcement against third parties c) Pendency of action for annulment of sale 10. Annulment of sale

General Banking Act, Section 47 Cases: Allied Banking Corp. vs. Mateo, G.R. 167420, June 5, 2009; GC Dalton vs. EPCIB, G.R. No. 171169, August 24, 2009

Act Number 1508 ACT NO. 1508

ACT NO. 1508 - AN ACT PROVIDING FOR THE MORTGAGING OF PERSONAL PROPERTY AND FOR THE REGISTRATION OF THE MORTGAGES SO EXECUTED Section 1. The short title of this Act shall be "The Chattel Mortgage Law."

Sec. 2. All personal property shall be subject to mortgage, agreeably to the provisions of this Act, and a mortgage executed in pursuance thereof shall be termed chattel mortgage.

Sec. 3. Chattel mortgage defined. A chattel mortgage is a conditional sale of personal property as security for the payment of a debt, or the performance of some other obligation specified therein, the condition being that the sale shall be void upon the seller paying to the purchaser a sum of money or doing some other act named. If the condition is performed according to its terms the mortgage and sale immediately become void, and the mortgagee is thereby divested of his title.

Sec. 4. Validity. A chattel mortgage shall not be valid against any person except the mortgagor, his executors or administrators, unless the possession of the property is delivered to and retained by the mortgagee or unless the mortgage is recorded in the office of the register of deeds of the province in which the mortgagor resides at the time of making the same, or, if he resides without the Philippine Islands, in the province in which the property is situated: Provided, however, That if the property is situated in a different province from that in which the mortgagor resides, the mortgage shall be recorded in the office of the register of deeds of both the province in which the mortgagor resides and that in which the property is situated, and for the purposes of this Act the city of Manila shall be deemed to be a province.

Sec. 5. Form. A chattel mortgage shall be deemed to be sufficient when made substantially in accordance with the following form, and shall be signed by the person or persons executing the same, in the presence of two witnesses, who shall sign the mortgage as witnesses to the execution thereof, and each mortgagor and mortgagee, or, in the absence of the mortgagee, his agent or attorney, shall make and subscribe an affidavit in substance as hereinafter set forth, which affidavit, signed by the parties to the mortgage as above stated, and the certificate of the oath signed by the authority administering the same, shall be appended to such mortgage and recorded therewith.

FORM OF CHATTEL MORTGAGE AND AFFIDAVIT.

"This mortgage made this ____ day of ______19____ by _______________, a resident of the municipality of ______________, Province of ____________, Philippine Islands mortgagor, to ____________, a resident of the municipality of ___________, Province of ______________, Philippine Islands, mortgagee, witnesseth:

"That the said mortgagor hereby conveys and mortgages to the said mortgagee all of the following-described personal property situated in the municipality of ______________, Province of ____________ and now in the possession of said mortgagor, to wit:

(Here insert specific description of the property mortgaged.)

"This mortgage is given as security for the payment to the said ______, mortgagee, of promissory notes for the sum of ____________ pesos, with (or without, as the case may be) interest thereon at the rate of ___________ per centum per annum, according to the terms of __________, certain promissory notes, dated _________, and in the words and figures following (here insert copy of the note or notes secured).

"(If the mortgage is given for the performance of some other obligation aside from the payment of promissory notes, describe correctly but concisely the obligation to be performed.)

"The conditions of this obligation are such that if the mortgagor, his heirs, executors, or administrators shall well and truly perform the full obligation (or obligations) above stated according to the terms thereof, then this obligation shall be null and void.

"Executed at the municipality of _________, in the Province of ________, this _____ day of 19_____

____________________ (Signature of mortgagor.)

"In the presence of

"_________________ "_________________ (Two witnesses sign here.)

FORM OF OATH. "We severally swear that the foregoing mortgage is made for the purpose of securing the obligation specified in the conditions thereof, and for no other purpose, and that the same is a just and valid obligation, and one not entered into for the purpose of fraud."

FORM OF CERTIFICATE OF OATH. "At ___________, in the Province of _________, personally appeared ____________, the parties who signed the foregoing affidavit and made oath to the truth thereof before me.

"_____________________________" (Notary public, justice of the peace, 1 or other officer, as the case may be.)

Sec. 6. Corporations. When a corporation is a party to such mortgage the affidavit required may be made and subscribed by a director, trustee, cashier, treasurer, or manager thereof, or by a person authorized on the part of such corporation to make or to receive such mortgage. When a partnership is a party to the mortgage the affidavit may be made and subscribed by one member thereof.

Sec. 7. Descriptions of property. The description of the mortgaged property shall be such as to enable the parties to the mortgage, or any other person, after reasonable inquiry and investigation, to identify the same.

If the property mortgaged be large cattle," as defined by section one of Act Numbered Eleven and forty-seven, 2 and the amendments thereof, the description of said property in the mortgage shall contain the brands, class, sex, age, knots of radiated hair commonly known as remolinos, or cowlicks, and other marks of ownership as described and set forth in the certificate of ownership of said animal or animals, together with the number and place of issue of such certificates of ownership.

If growing crops be mortgaged the mortgage may contain an agreement stipulating that the mortgagor binds himself properly to tend, care for and protect the crop while growing, and faithfully and without delay to harvest the same, and that in default of the performance of such duties the mortgage may enter upon the premises, take all the necessary measures for the protection of said crop, and retain possession thereof and sell the same, and from the proceeds of such sale pay all expenses incurred in caring for, harvesting, and selling the crop and the amount of the indebtedness or obligation secured by the mortgage, and the surplus thereof, if any shall be paid to the mortgagor or those entitled to the same.

A chattel mortgage shall be deemed to cover only the property described therein and not like or substituted property thereafter acquired by the mortgagor and placed in the same depository as the property originally mortgaged, anything in the mortgage to the contrary notwithstanding.

Sec. 8. Failure of mortgagee to discharge the mortgage. If the mortgagee, assign, administrator, executor, or either of them, after performance of the condition before or after the breach thereof, or after tender of the performance of the condition, at or after the time fixed for the performance, does not within ten days after being requested thereto by any person entitled to redeem, discharge the mortgage in the manner provided by law, the person entitled to redeem may recover of the person whose duty it is to discharge the same twenty pesos for his neglect and all damages occasioned thereby in an action in any court having jurisdiction of the subject-matter thereof.

Sec. 9-12. (inclusive) 3

Sec. 13. When the condition of a chattel mortgage is broken, a mortgagor or person holding a subsequent mortgage, or a subsequent attaching creditor may redeem the same by paying or delivering to the mortgagee the amount due on such mortgage and the reasonable costs and expenses incurred by such breach of condition before the sale thereof. An attaching creditor who so redeems shall be subrogated to the rights of the mortgagee and entitled to foreclose the mortgage in the same manner that the mortgagee could foreclose it by the terms of this Act.

Sec. 14. Sale of property at public auction; Officer's return; Fees; Disposition of proceeds. The mortgagee, his executor, administrator, or assign, may, after thirty days from the time of condition broken, cause the mortgaged property, or any part thereof, to be sold at public auction by a public officer at a public place in the municipality where the mortgagor resides, or where the property is situated, provided at least ten days' notice of the time, place, and purpose of such sale has been posted at two or more public places in such municipality, and the mortgagee, his executor, administrator, or assign, shall notify the mortgagor or person holding under him and the persons holding subsequent mortgages of the time and place of sale, either by notice in writing directed to him or left at his abode, if within the municipality, or sent by mail if he does not reside in such municipality, at least ten days previous to the sale.

The officer making the sale shall, within thirty days thereafter, make in writing a return of his doings and file the same in the office of the register of deeds where the mortgage is recorded, and the register of deeds shall record the same. The fees of the officer for selling the property shall be the same as in the case of sale on execution as provided in Act Numbered One hundred and ninety, 4 and the amendments thereto, and the fees of the register of deeds for registering the officer's return shall be taxed as a part of the costs of sale, which the officer shall pay to the register of deeds. The return shall particularly describe the articles sold, and state the amount received for each article, and shall operate as a discharge of the lien thereon created by the mortgage. The proceeds of such sale shall be applied to the payment, first, of the costs and expenses of keeping and sale, and then to the payment of the demand or obligation secured by such mortgage, and the residue shall be

paid to persons holding subsequent mortgages in their order, and the balance, after paying the mortgages, shall be paid to the mortgagor or person holding under him on demand.

If the sale includes any "large cattle," a certificate of transfer as required by section sixteen of Act Numbered Eleven hundred and forty-seven 5 shall be issued by the treasurer of the municipality where the sale was held to the purchaser thereof.

Sec. 15. 6, 6a

Sec. 16. This Act shall take effect on August first, nineteen hundred and six.

Enacted, July 2, 1906.

Footnotes

1. Now Municipal judge. 2. Now section 511 of the Administrative Code. 3. Repealed by Act 3815, Article 367 approved December 8, 1930. 4. Now Rule 141, section 7 of the Rules of Court. 5. Now Section 523 of the Administrative Code. 6. Superseded by section 198 of the Administrative Code. The following is the present text of section 198 as amended by RA 2711, approved June 18, 1960.

"SECTION 198. Registration of chattel mortgages and fees collectible in

connection therewith. Every register of deeds shall keep a primary entry book and a registration book for the chattel mortgages; shall certify on each mortgage filed for record, as well as on its duplicate, the date, hour, and minute when the same was by him received; and shall record in such books any chattel mortgage, assignment, or discharge thereof, and any other instruments relating to a recorded mortgage, and all such instruments shall be presented to him in duplicate, the original to be filed and the duplicate to be returned to the person concerned.

"The recording of a mortgage shall be effected by making an entry, which shall be given a correlative number, setting forth the names of the mortgagee, and the mortgagor, the sum or obligation guaranteed, date of the instrument, name of the notary before whom it was sworn to or acknowledged, and a note that the property mortgaged, as well as the terms and conditions of the mortgage, is mentioned in detail in the instrument filed, giving the proper file number thereof. The recording of other instruments relating to a recorded mortgage shall be effected by way of annotations on the space provided therefor in the registration book, after the same shall have been entered in the primary entry book.

"The register of deeds shall also certify the officer's return of sale upon any mortgage, making reference upon the record of such officer's return to the volume and page of the record of the mortgage, and a reference of such return on the record of the mortgage itself, and give a certified copy thereof, when requested, upon payment of the lawful fees for such copy; and certify upon each mortgage officer's return of sale or discharge of mortgage; and upon any other instrument relating to such a recorded mortgage, both on the original and on the duplicate, the date, hour, and minute when the same is received for record and record such certificate with the return itself and keep an alphabetical index of mortgagors and mortgagees, which record and index shall be open to public inspection.

"Duly certified copies of such records and of filed instruments shall be receivable as evidence in any court.

"The register of deeds shall collect the following fees for services rendered by him under this section:

"(a) For entry or presentation of any document in the primary entry book, one peso. Supporting papers presented together with the principal document need not be charged any entry or presentation fee unless the party in interest desires that they be likewise entered.

"(b) For filing and recording each chattel mortgage, including the necessary certificates and affidavits, the fees established in the following schedule shall be collected:

"1. When the amount of the mortgage does not exceed six thousand pesos, three pesos and fifty centavos for the first five hundred pesos or fractional part thereof, and one peso and fifty centavos for each additional five hundred pesos or fractional part thereof.

"2. When the amount of the mortgage is more than six thousand pesos but does not exceed thirty thousand pesos, twenty-four pesos for the initial amount not exceeding eight thousand pesos, and four pesos for each additional two thousand pesos or fractional part thereof.

"3. When the amount of the mortgage is more than thirty thousand pesos but does not exceed one hundred thousand pesos, seventy-five pesos for the initial amount not exceeding thirty-five thousand pesos, and seven pesos for each additional five thousand pesos or fractional part thereof.

"4. When the amount of the mortgage is more than one hundred thousand pesos but does not exceed five hundred thousand pesos, one hundred and seventy-six pesos for the initial amount not exceeding one hundred ten thousand pesos, and ten pesos for each additional ten thousand pesos or fractional part thereof.

"5. When the amount of the mortgage is more than five hundred thousand pesos, five hundred eighty-one pesos for the initial amount not exceeding five hundred twenty thousand pesos, and fifteen pesos for each additional twenty

thousand pesos or fractional part thereof: Provided, however, That registration of the mortgage in the province where the property is situated shall be sufficient registration: And provided, further, That if the mortgage is to be registered in more than one city or province, the register of deeds of the city or province where the instrument is first presented for registration shall collect the full amount of the fees due in accordance with the schedule prescribed above, and the register of deeds of the other city or province where the same instrument is also to be registered shall collect only a sum equivalent to twenty per centum of the amount of fees due and paid in the first city or province, but in no case shall the fees payable in any registry be less than the minimum fixed in said schedule.

"(c) For recording each instrument of sale, conveyance, or transfer of the property which is subject of a recorded mortgage, or of the assignment of mortgage credit, the fees established in the preceding schedule shall be collected on the basis of ten per centum of the amount of the mortgage or unpaid balance thereof: Provided, That the latter is stated in the instrument.

"(d) For recording each notice of attachment, including the necessary index and annotations, four pesos.

"(e) For recording each release of mortgage, including the necessary index and references, the fees established in the schedule under paragraph (b) above shall be collected on the basis of five per centum of the amount of the mortgage.

"(f) For recording each release of attachment, including the proper annotations, two pesos.

"(g) For recording each sheriff's return of sale, including the index and references, three pesos.

"(h) For recording a power of attorney, appointment of judicial guardian, administrator, or trustee, or any other instrument in which a person is given power to act in behalf of another in connection with a mortgage, three pesos.

"(i) For recording each instrument or order relating to a recorded mortgage, including the necessary index and references, for which no specific fee is provided above, two pesos.

"(j) For certified copies of records, such fees as are allowed by law for copies kept by the register of deeds.

"(k) For issuing a certificate relative to, or showing the existence or nonexistence of, an entry in the registration book, or a document on file, for each such certificate containing not more than two hundred words, three pesos; if it exceeds that number, an additional fee of fifty centavos shall be collected for every one hundred words or fractional part thereof, in excess of the first two hundred words."

Republic Act 4118 Ammended Act Number 3135 REPUBLIC ACT No. 4118

AN ACT CONVERTING CERTAIN PARCELS OF LAND IN THE CITY OF MANILA, WHICH IS RESERVED AS COMMUNAL PROPERTY, INTO DISPOSABLE OR ALIENABLE LAND OF THE STATE AND PROVIDING FOR ITS SUBDIVISION AND SALE.

Section 1. Lot 1-B-2B of Block 557 of the cadastral survey of the City of Manila, situated in the District of Malate, City of Manila, which is reserved as communal property, is hereby converted into disposable or alienable land of the State, to be placed under the disposal of the Land Tenure Administration. The Land Tenure Administration shall subdivide the property into small lots, none of which shall exceed one hundred and twenty square meters in area and sell the same on installment basis to the tenants or bona fide occupants thereof and to individuals, in the order mentioned: Provided, That no down payment shall be required of tenants or bona fide occupants who cannot afford to pay such down payment: Provided, further, That no person can

purchase more than one lot: Provided, furthermore, That if the tenant or bona fide occupant of any given lot is not able to purchase the same, he shall be given a lease from month to month until such time that he is able to purchase the lot: Provided, still further, That in the event of lease, the rentals which may be charged shall exceed eight per cent per annum of the assessed value of the property leased: And provided, finally, That in fixing the price of each lot, which shall not exceed twenty pesos per square meter, the cost of subdivision and survey shall not be included.

Section 2. Upon approval of this Act, no ejectment proceedings against any tenant or bona fide occupant of the above lots shall be instituted and any ejectment proceedings pending in court against any such tenant or bona fide occupant shall be dismissed upon motion of the defendant: Provided, That any demolition order directed against any tenant or bona fide occupant thereof shall be lifted.

Section 3. Upon approval of this Act, if the tenant or bona fide occupant is in arrears in the payment of any rentals, the amount legally due shall be liquidated and shall be payable in twenty-four equal monthly installments from the date of liquidation.

Section 4. No property acquired by virtue of this Act shall be transferred, sold, mortgaged, or otherwise disposed of within a period of five years from the date full ownership thereof has been vested in the purchaser without the consent of the Land Tenure Administration.

Section 5. In the event of the death of the purchaser prior to the complete payment of the price of the lot purchased by him, his widow and children shall succeed in all his rights and obligations with respect to his lot.

Section 6. The Chairman of the Land Tenure Administration, shall implement and issue such rules and regulations as may be necessary to carry out the provisions of this Act.

Section 7. The sum of one hundred fifty thousand pesos is appropriated out of

any funds in the National Treasury not otherwise appropriated, to carry out the purposes of this Act.

Section 8. All laws or parts of laws inconsistent with this Act are repealed or modified accordingly.

Section 9. This Act shall take effect upon its approval.

Approved: June 20, 1964

Act Number 3135 REPUBLIC ACT NO. 3135

AN ACT REVISING ACT NUMBERED THIRTY-TWO HUNDRED SIXTY-TWO, OTHERWISE KNOWN AS THE CHARTER OF THE PHILIPPINE AMATEUR ATHLETIC FEDERATION.

Section 1. Short title. This Act shall be known as the Revised Charter of the Philippine Amateur Athletic Federation.

Sec. 2. Original Creation and membership of the Philippine Amateur Athletic Federation. Manuel L. Quezon, Camilo Osias, Alejandro Albert, H. A. Bordner, R. S. Fitz, Kenneth Rowntree, Regino R. Ylanan, Jorge R. Varga, E. S. Turner, V. Buencamino, C. J. Bott, Joaquin Alviar, Fred O. England, C. Preysler, Gabriel Ubago Geo, R. Summers, Martin Eiguren, Damaso Garcia Bosque, J. A. Murphy, W. N. Bartholomew, Silvestre Torres, Theo S. Hall, C. John, R. R. Garcia, P. Dulay, H. L. Noble, J. Truitt Maxwell, Vicente Wenceslao, Adam C. Dorkum, and their successors in interest and the National Sports' Associations hereinafter provided are hereby created a body corporate and public in the Philippines, to be known as the "Philippine Amateur Athletic Federation" with such corporate powers as may be necessary to carry out the purposes of the Act.

Section 3. Purposes of the Corporation. The purposes of this corporation are: (a) to encourage physical education and fitness; (b) to promote and improve athletic sports among amateurs; (c) to establish and maintain a uniform test of amateur standing and uniform rules for the government of all athletic sports; (d) to develop the spirit of sportsmanship and fair play; and (e) to encourage and promote the establishment of sports centers, public playgrounds and recreational facilities.

Sec. 4. Board of Governors; Composition. The Philippine Amateur Athletic Federation shall have a Board of Governors to be composed of all surviving incorporators and three representatives from each National Sports' Association recognized by the Philippine Amateur Athletic Federation: Provided, however, That no representative of any National Sports' Association shall represent more than one association in the Board.

Sec. 5. Functions, powers and duties of the Board. The Board of governors shall have the following functions, powers and duties:

1. To adopt a constitution and by-laws;

2. To adopt a uniform set of rules to determine and govern amateur athletes and sports in the Philippines;

3. To adopt rules and regulations, consistent with administrative due process, to govern the procedure to be observed by the National Sports' Association and the executive committee in hearing and deciding cases before them either on initial hearing or an appeal;

4. To suspend for cause a member-association of the federation by a vote of two-thirds of the board and withdrawn recognition of an association by a vote of three-fourths of the board. The reinstatement to active status of the association affected shall be effected in the same manner;

5. To authorize the executive committee to negotiate and conclude, for and in behalf of the federation, transactions for the acquisition, disposition, and encumbrance of real or personal property as well as the raising of funds for the accomplishment of the purposes of the federation.

Sec. 6. Meeting, quorum of the Board. The board of governors shall have an annual general meeting at such time and place as may be provided by its constitution and by laws. Special meetings may be called by the President either at his own initiative or upon the request of one-third of the members of the board.

At all meetings of the board, the presence of a majority of the members thereof shall constitute a quorum for the valid transaction of business. Each member of the Board shall be entitled to only one vote and no vote by proxy shall be allowed.

Sec. 7. Officers of the Corporations. The Philippine Amateur Athletic Federation shall have a President, a first and a second Vice-President, and an executive secretary-treasurer. The officers shall be elected by the Board from among its members with the exception of the President and the exclusive secretary-treasurer who may or may not be members of the board: Provided, however, That the President and the executive secretary-treasurer must be persons who are known for their dedication to sports in general.

The President and Vice-Presidents shall serve for a term of two years and the executive secretary-treasurer for a term of four years beginning on the first day of the month following their election and until their successors shall have been elected and qualified: Provided, however, That no officer's position shall be deemed vacated if he ceases to be the representative of his association in the board and such vacancy may be filled for the unexpired term by special election at a meeting of the board called for that purpose.

Sec. 8. Executive committee. There shall be an executive committee which shall be composed of the President, the two Vice-Presidents, and the executive secretary-treasurer of the federation, one representative from each National Sports' Association to be appointed by each association from among its representatives in the Board of Governors, and three members-at-large to

be selected by the executive committee, one from the Senate, one from the House of Representatives and one from the Office of the President. The executive committee may at its discretion select two additional members-atlarge from the general public.

The National Sports' Association to which the President of the Federation belongs shall appoint another representative to represent it in the executive committee.

Section 9. Powers, functions and duties of executive committee. The executive committee shall have the following powers, functions and duties:

1. To implement all the policies and decisions laid down by the Board of Governors;

2. To prepare an annual budget and submit the same for the approval of the Board of Governors at the annual meeting;

3. To coordinate and harmonize the activities of all National Sports' Associations;

4. To administer the common properties and stadia of the Philippine Amateur Athletic Federation and assist in the maintenance of existing athletic facilities in regional sports centers, subject to the conditions that it may impose;

5. To adopt such rules and regulations as may be necessary for the discharge of its functions and consistent herewith;

6. To maintain, enforce, and defend the exclusive right of the federation to the use of the work "The Olympic", Olympic shield, all Olympic insignia, and all other Philippine Sports' insignia that it or the National Sports' Associations

may design and prescribe for use by Filipino Athletes of whatever nature, and to confine their use to activities and publicity concerned with the Olympic games, and with the purposes, powers, and procedures of the federation;

7. To act and decide on all appeals brought before it regarding controversies on the amateur status of athletes and teams, as well as those arising between members of the federation and between the associations and their members; and

8. To encourage and promote the establishment of sports centers, public playgrounds and recreational facilities.

Sec. 10. Formation of Board of Governors and Executive Committee. The Board of Governors and Executive Committee hereinbefore provided shall be formed and organized for the effective discharge of their functions herein as soon as nine National Sports' Associations shall have been fully organized and operating and shall assume their rights and duties hereunder.

Sec. 11. National Sports' Association; organization and recognition. A National Association shall be organized for each individual sports in the Philippines in the manner hereinafter provided to constitute the Philippine Amateur Athletic Federation.

Applications for recognition as a National Sports' Association shall be filed with the executive committee together with, among others, a copy of the constitution and by-laws and a list of the members of the proposed association, and a filing fee of ten pesos.

The Executive Committee shall give the recognition applied for if it is satisfied that said association will promote the purposes of this Act and particularly section three hereof. No application shall be held pending for more than three months after the filing thereof without any action having been taken thereon by the executive committee. Should the application be rejected, the reasons for such rejection shall be clearly stated in a written communication to the applicant. Failure to specify the reasons for the rejection shall not affect the

application which shall be considered as unacted upon: Provided, however, That until the executive committee herein provided shall have been formed, applications for recognition shall be passed upon by the duly elected members of the present executive committee of the Philippine Amateur Athletic Federation. The said executive committee shall be dissolved upon the organization of the executive committee herein provided: Provided, further, That the functioning executive committee is charged with the responsibility of seeing to it that the National Sports' Associations are formed and organized within six months from and after the passage of this Act.

Sec. 12. Nature of Associations. The National Sports' Associations formed herein shall be autonomous in character and shall have exclusive control over the development and promotion of the particular sports for which they are organized.

Sec. 13. Membership. Each National Sports' Association shall, by its constitution and by-laws, determine its organization and membership: Provided, however, That no team, school, club, organization, or entity shall be admitted as a voting member of an association unless 60% of the athletes composing said team, school, club, organization, or entity are Filipino citizens.

Sec. 14. Functions, powers and duties of Associations. The National Sports' Association shall have the following functions, powers and duties:

1. To adopt a constitution and by-laws for their internal organization and government;

2. To raise funds by donations, benefits, and other means for their purposes;

3. To purchase, sell, lease or otherwise encumber property both real and personal, for the accomplishment of their purpose;

4. To affiliate with international or regional sports' Association after due

consultation with the executive committee;

5. To conduct local, interport and international competitions, other than the Olympic and Asian Games, they may deem necessary for the promotion of the sport;

6. To render an annual report to the executive committee regarding their finances and activities which shall be submitted at least thirty days before the annual meeting of the Board of Governors;

7. To appoint their representatives to the Board of Governors and the executive committee;

8. To decide, subject to appeal to the executive committee, all questions on the amateur status and discipline of the athletes connected with the associations, as well as the members thereof and all disputes between their members;

9. To adopt a training program for the development of athletes and their preparation for international competitions and to defray the expenses for the same;

10. To select the athletes, coach, and other officials for their national teams taking into consideration not only their athletic abilities but also their moral character.

11. To keep accurate records of all official marks attained by the athletes in the associations in all competitions as well as all results of sports competitions, recognize and ratify the same, and furnish copies thereof to the executive committee;

12. To qualify and license referees and umpires and other game officials

who shall officiate in competitions in their respective sports; and

13. To perform such other acts as may be necessary for the proper accomplishment of their purposes and not inconsistent with this Act.

Sec. 15. Restriction on holding of office. No person shall be eligible for election as president or as the head of more than one National Sports' Association.

Sec. 16. Formation of National Olympic Committee. The National Olympic Committee shall be composed of the members of the executive committee whose sports are included in the Olympic program, the three members representing the Senate, the House of Representatives and the Office of the President, and the representative of the International Olympic Committee. This committee shall function in accordance with the rules of the International Olympic Committee.

Sec. 17. Business location. The Philippine Amateur Athletic Federation and all National Sports' Association organized hereunder shall have their principal place of business either in Manila or Quezon City.

Sec. 18. Properties and funds of the Philippine Amateur Athletic Federation. The properties and funds of the Federation shall be of two kinds, namely, common and particular.

Common funds and properties are such monies and real or personal properties that belong to the Philippine Amateur Athletic Federation for general use by the members thereof.

Common properties of the federation comprise the Rizal Memorial Stadia and such other real and personal properties owned and operated by the Philippine Amateur Athletic Federation created under Act Numbered Thirty-two hundred sixty-two, and those which the federation may acquire hereafter. Common funds of the federation comprise the following:

(a) The net receipts from Philippine Charity Sweepstakes races and, for this purpose, the Philippine Amateur Athletic Federation shall be entitled to the receipts of three sweepstakes races a year, any law to the contrary notwithstanding.

(b) Donations, bequests and devises, as well as receipts from benefit games and other kinds of benefits conducted by the federation.

(c) Annual dues from the National Sports' Associations.

(d) Income realized from its real and personal properties.

(e) Receipts from any other funds.

(f) Stocks, bonds, monies and other forms of credit owned by the Philippine Amateur Athletic Federation created under Act Numbered Thirty-two hundred sixty-two and those which the federation may subsequently acquire.

Particular properties and funds are those revised or acquired by the National Sports' Associations for their exclusive use and the ownership and control of which shall remain with them. Should any association be subsequently dissolved or ceased to exist its properties and funds shall be held in trust by the federation and may be utilized as in the case of common properties and funds until such time as they shall again be needed by the successor of the dissolved or defunct association.

Particular properties of National Sports' Associations shall comprise such real and personal properties as shall be owned by them by purchase, donations, bequests, or otherwise.

Particular funds of National Sports' Association shall comprise the following:

(a) Monies raised through donations and receipts from benefit games, and officially conducted competitions.

(b) Annual dues from their respective members, the annual dues to be paid to the federation by each association shall be determined by the executive committee after taking into consideration the paying capacity of the Association concerned, while that to be paid to the National Sports' Association by their respective members shall be determined by each association.

Sec. 19. Presidential Land Grant. The provisions of any existing law to the contrary notwithstanding, the President, upon the recommendation of the Secretary of Agriculture and Natural Resources may, by donation, sale, lease or otherwise, grant to the Philippine Amateur Athletic Federation portions of the land of the public domain as may be necessary to carry out the purposes of this Act.

Sec. 20. Expenditures of funds and uses of properties. Common funds of the federation shall be expended for any or all of the following purposes:

(a) To defray the administrative expenses of the federation.

(b) To defray the expenses for the maintenance, preservation, and improvement of the common properties of the federation.

(c) To defray the transportation, equipment and board and lodging expenses of Philippine Athletic delegations and participants to the Olympics and Asians Games and other International competitions as well as the preparation for the holding of Olympic competitions and Asian games in the Philippines: Provided, however, That should the funds not be sufficient for the purpose, voluntary contributions may be secured from the Associations but such contribution shall first be applied to defray the expenses of the

Association making the contribution.

Particular funds of the National Sports' Associations shall be expended for the accomplishment of their respective purposes.

Sec. 21. Use of facilities. Subject to regulations of the federation, its playgrounds and stadia shall be available for the use of the association and their members in preference to all others and, for such use, they shall be charged a rental to be determined by the executive committee.

Sec. 22. Exemption of income and properties from taxes. Any laws to the contrary notwithstanding, all income, properties, and importation of sports equipment and materials by the Philippine Amateur Athletic Federation and the members shall be exempt from amusement, real property, specific taxes and all other taxes and duties: Provided, however, That the sports equipment and material imported herein shall be for the exclusive use of the federation, the associations and their athlete members and are not to be disposed of for commercial purposes or for profit.

Sec. 23. Effect of non-membership in the federation. From and after the date of the approval of this Act, no individual athlete, team, club, or organization engaged in sports activities who is not a member of an association as formed hereunder shall be allowed to participate in the national open championships and represent the Philippines in any competition at home or abroad or to enjoy the privileges hereunder.

Sec. 24. Penal Clause. A penalty of not exceeding one year imprisonment or a fine of not more than one thousand pesos or both at the discretion of the court shall be imposed upon any person who:

a. Shall solicit funds for any of the purposes mentioned in this Act without being authorized to do so hereunder or by the Philippine Amateur Athletic Federation or its member Associations;

b. Shall, without authority, use the word "Olympic", the Olympic shield, Olympic insignia and such other emblem designed and prescribed by the federation or any association for the exclusive use of Filipino Athletic members.

c. Shall sell or otherwise dispose of the sports equipment and material mentioned in section eighteen hereof for commercial purposes or for profit.

Section 25. Appropriation for the formation of National Sports' Associations. There shall be appropriated from thousands of the National Treasury not otherwise appropriated the sum of One hundred thousand pesos for the purpose of defraying the expenses in the formation of National Sports' Associations as provided herein.

Sec. 26. Repealing clause. Act Numbered Three thousand two hundred and sixty-two and all other Acts, Executive orders, rules and regulations or parts thereof inconsistent herewith are hereby repealed.

Sec. 27. Separability clause. In the event any provision of this Act or the application of such provision to any person or circumstance is declared unconstitutional, the remainder of this Act or the application of said provision to other persons or circumstances shall not be affected thereby.

Sec. 28. This Act shall take effect upon its approval.