Requirement for Presentation and Registration of Chattel Mortgage
- A chattel mortgage must be registered first with the Office of the Register of Deeds.
- The registered chattel mortgage document must be presented prior to any motor vehicle registration transaction involving a mortgaged vehicle.
Enforcement and Compliance
- Strict enforcement of the requirement is mandated without exception.
- LTO personnel are duty-bound to verify presentation and registration of chattel mortgages before processing registration.
Sanctions for Non-Compliance
- Failure of LTO personnel to enforce the provision, whether deliberate or not, shall result in appropriate sanctions.
- Possible sanctions include administrative, civil, or criminal penalties.
- Sanctions are imposed according to existing laws, rules, and regulations relevant to the violation.
Legal Reference and Continued Validity
- The directive reiterates the provisions contained in the Motor Vehicle Manual of Operations on Motor Vehicle Registration, Section 4.2.17.
- Emphasizes the continued effectivity and mandatory compliance with this manual provision.
Instruction for Strict Compliance
- All concerned LTO personnel and district offices are enjoined to exercise strict compliance with the registration requirement.
- The circular is issued to clarify and reinforce the consistent application of the law and existing procedures.
Issuance and Authority
- The memorandum circular bears the authority of the Assistant Secretary of the LTO.
- Demonstrates institutional commitment to safeguard the interests of mortgagees and uphold proper registration protocols.