QuestionsQuestions (PROCLAMATION NO. 540)
An action upon the indemnity bond must be brought within one hundred and twenty (120) days after the sale.
The bond is understood to be cancelled.
It is triggered by the sale of the attached property (i.e., 120 days after the sale).
Any person alleging to be the owner of the property levied on or to have a legal interest therein.
It must set out the claimant’s title to the property and the right to possession, and state the grounds of the claim.
The sheriff is not bound to keep the property claimed unless the plaintiff files a bond indemnifying the officer against such claim.
The amount of the bond shall not be greater than the value of the property in the local market.
The dispute is decided by the court having jurisdiction of the case in which the writ was issued, after hearing the sheriff, the plaintiff, and the third party.
The sheriff shall forthwith proceed to comply with the writ, unless an injunction has been issued.
No claim to the levied property is valid against the sheriff, nor can it be received or be notice of rights against him, unless the third party made the claim as provided and enforced it by the proper action within 120 days after the sale.
No. The last sentence states that nothing prevents the owner from vindicating his claim by any proper action within the period established by the laws governing prescription.
Even if the bond is filed, the sheriff shall not proceed to comply with the writ if an injunction has been issued.
When the execution or attachment is for the benefit of the Government of the Philippine Islands and is made under the immediate supervision of the Solicitor-General.
The sheriff is represented by the Solicitor-General; if held liable by final decision, the amount is paid by the Insular Treasurer from the funds appropriated for that purpose.
All rights of action against such bonds shall be prescribed and the bonds shall be cancelled unless action is brought thereon within 120 days after the Act takes effect.
It shortens the period during which the bond can be enforced, promoting finality of attachment/sale outcomes while still allowing the owner to vindicate rights via other actions subject to general prescription laws.