Law Summary

SECTION 1: Creation of Lien

• Legal Principle: The Act establishes a lien on properties covered by mortgages executed by the Manila Railroad Company upon filing with the appropriate division.
• Key Definitions:
  • "Lien": A legal right or interest that a lender has in the borrower's property, granted until the debt obligation is satisfied.
• Requirements/Procedures:
  • Mortgages executed to the Central of New York (January 1, 1907) and the New York Trust Company (April 1, 1907) must be filed with the Division of Archives, Patents, Copyrights, and Trade-Marks of the Executive Bureau.
• Timeframe: The lien takes effect from the moment of filing.
• Consequences:
  • The lien takes precedence over all liens and encumbrances except for lawful tax-related liens.
  • Any further conveyance of the property will be subject to the established lien.

SECTION 2: Preservation of Rights

• Legal Principle: This section clarifies that the Act does not nullify any existing rights or liens that beneficiaries may have under these instruments outside the provisions of this Act.
• Key Definitions:
  • "Grantees" or "Beneficiaries": Individuals or entities entitled to benefits from the mortgages.

SECTION 3: Indorsement of Filing

• Legal Principle: Upon filing, the Chief of the Division must endorse the instruments with the date and time of filing.
• Requirements/Procedures:
  • The endorsement serves as prima facie evidence of the filing date and time.

SECTION 4: Preservation and Indexing

• Legal Principle: Instruments filed under this Act are to be preserved and indexed like other corporate documents.
• Requirements/Procedures:
  • The filing process must adhere to the guidelines set forth in Act No. 1459 and its amendments regarding corporate documents.

SECTION 5: Filing Fee

• Legal Principle: A fee is established for the filing of the instruments.
• Requirements:
  • The fee for filing each instrument is set at twenty-five pesos.

SECTION 6: Exemption from Stamp Taxes

• Legal Principle: The instruments described are exempt from stamp taxes as specified in Section 116 of Act No. 1189, as amended.
• Key Definitions:
  • "Stamp taxes": Taxes imposed on certain documents, often based on their value.

SECTION 7: Legal Effect of Certified Copies

• Legal Principle: Certified copies of the filed instruments hold the same legal weight as the originals.
• Requirements:
  • Certification must be by the Chief of the Division of Archives, Patents, Copyrights, and Trade-Marks.

SECTION 8: Effectivity

• Legal Principle: The Act becomes effective immediately upon passage.

Key Takeaways

• The Act establishes a formal process for the Manila Railroad Company to file mortgages, creating a legal lien on the affected properties, effective immediately upon filing.
• It preserves existing rights under the mortgages and ensures the filing process is documented and indexed appropriately.
• A nominal fee is required for filing, and the instruments are exempt from stamp taxes.
• Certified copies of the documents will have the same legal standing as the originals, enhancing their enforceability.