Question & AnswerQ&A (LTO MEMORANDUM CIRCULAR NO. 96-227)
The purpose is to regulate the annotation and/or cancellation of chattel mortgage, attachment, and other liens or encumbrances on motor vehicles to affect third persons by ensuring such details are recorded with the Register of Deeds and the Land Transportation Office (LTO).
It covers the annotation and/or cancellation of chattel mortgage, attachment, and other liens or encumbrances on motor vehicles.
It should be effected at the District Office that issued the latest Certificate of Registration.
No, in the National Capital Region, such annotation and/or cancellation shall be effected only in the same District Office that issued the Certificate of Registration or Certificate of Registration Encumbered.
A written consent of the first mortgagee endorsed at the back of the chattel mortgage contract and the recording of such consent with the Register of Deeds is required. The existence of the first mortgage must be indicated on the new Certificate of Registration Encumbered.
The book must contain columns for motor number, chassis number, file number, plate number, certificate of registration (CR or CRE), and the time, date, and number of entry.
The fee is P100.00 for every annotation and/or cancellation transaction.
This Circular implements the provisions of Section 4 (d-1) in relation to Section 5(e) of Republic Act 4136 (Land Transportation and Traffic Code of the Philippines), as amended.
It took effect immediately upon adoption on January 17, 1996.