QuestionsQuestions (LTO MEMORANDUM CIRCULAR NO. 96-227)
It is issued pursuant to Section 4(d-1) in relation to Section 5(e) of R.A. 4136 (Land Transportation and Traffic Code of the Philippines), as amended.
The circular covers the annotation and/or cancellation of chattel mortgage, attachment, and other lien or encumbrance.
To affect third persons; recording is necessary for their enforceability against third parties.
At the District Office that issued the latest Certificate of Registration (CR).
Annotation and/or cancellation of chattel mortgage in the NCR shall be effected only in the same District Office that issued the CR or Certificate of Registration Encumbered (CRE).
A written consent of the mortgagee must be endorsed at the back of the chattel mortgage contract and recorded with the Register of Deeds.
It must be indicated on the new Certificate of Registration Encumbered (CRE).
The issuing district office must confirm the Certificate of Registration (for annotation) or Certificate of Registration Encumbered (for cancellation) and the official receipt of payment of registration fees, and then record the transaction on the face of all outstanding copies of the CR and CRE.
The motor vehicle must be physically inspected by the District Office accepting the annotation and/or cancellation.
In a Book of Motor Vehicle Encumbrances kept by the LTO, containing the specified columns.
Motor number, chassis number, file number, plate number, certificate of registration (CR or CRE), and the time, date, and number of entry.
P100.00 for every annotation and/or cancellation of chattel mortgage, attachment and lien or encumbrance.
Any circular, memoranda, or regulation in conflict with it is modified, amended, or superseded accordingly.
It takes effect immediately.