SOP Exhibits

Title:

Exhibit 7 - Contract of Chattel Mortgage

SOP Number : HR-PB18

EXHIBIT 7

Republic of the Philippines
Department of Agriculture
NATIONAL AGRICULTURAL & FISHERY COUNCIL
Diliman, Quezon City

CONTRACT OF CHATTEL MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

This CHATTEL MORTGAGE, made and executed this _____ day of ___________________ , 19 ____ at, Philippines by and between:

_________________________________ of legal age, single/married, with
residence and postal address at _________________________________
__________________________ hereinafter called the "MORTGAGOR";

in favor of

The National Agricultural and Fishery Council (NAFC) a duly established government agency, with office address at the 4th floor, Department of Agriculture Building, Elliptical Road Diliman, Quezon City, represented herein by the _______________________________________ hereinafter referred to as the :"MORTGAGEE";

W I T N E S S E T H :

That the MORTGAGOR has availed of a loan under the NAFC Special Vehicle Loan Fund Program (NAFC-SVLF) representing a two-wheeled motorcycle more particularly described as follows:

Brand : __________________ Chassis No. : _____________
Engine No. : __________________ O.R. NO. : ______________
Model : __________________ Reg. Cert. No. ______________

That under the Special Vehicle Loan Fund Program, The Philippine National Bank (PNB) pays the motorcycle to the supplier and payment to the PNB is guaranteed from the Special Vehicle Loan Fund of the MORTGAGEE;

That this mortgage is given as security for the payment to said MORTGAGEE of a promissory note hereto attached and made an Integral part of this Chattel Mortgage for the principal sum of _________________________________________ (P__________) Philippine currency payable in ___________ equal monthly installment with interest rate of 8.5 percent per annum on the remaining balance;

That this Chattel Mortgage is subject to the following terms and conditions:

1. That Mortgagor warrants that all terms and dues on the aforementioned vehicle have been fully paid and said properly is free from any lien or encumbrances of whatsoever nature save the present Chattel Mortgage;

2. In case the Mortgagor defaults in the payment of any of the installments in accordance with the terms of the promissory note secured by this Chattel Mortgage, the whole amount remaining unpaid under the promissory note shall immediately become due and demandable;

3. That should the Mortgagor violate any of the terms and conditions of this mortgage and or rules, regulations and/or policy of the Mortgagee on Special Vehicle Loan Fund (SVLF) '72 Program, the whole amount remaining unpaid under the promissory note shall immediately become due and demandable;

4. That should the Mortgagor violate the provisions no. 1, 2 and 3 hereof, the Mortgagee is authorized to take immediate possession of the vehicle with authority to withhold payment of the salaries and other monies due to the Mortgagor as an employee of _______________________________ and apply the amount withheld to the payment of Mortgagor's outstanding obligations under the promissory note. In case it shall become necessary for the Mortgagee to resort to court action for the enforcement of its right under this Chattel Mortgage or for the reposession of the subject property by reason of default or other causes attributable to the Mortgagor, said Mortgagor shall be liable to pay the cost of suit, attorney's fees, and other incidental expenses which in no case shall be less than 20% of the balance of the agreed purchase price then outstanding and other subsisting obligations arising thereunder.

5. Should the property be lost, destroyed or damaged from any cause whatsoever, the Mortgagee shall immediately declare the whole amount of the unpaid balance of the promissory note due and payable reserving in favor of the Mortgagee the rights afforded him under the proceeding paragraphs;

6. The Mortgagor shall insure the motorcycle during the period of amortization against damage or loss with a reputable insurance company in the sum of not less than P________________ and the policy shall be endorsed in favor of the mortgagee to the extent of its interest;

7. The Mortgagor agrees to exercise extraordinary care and deligence in the preservation and maintenance of the vehicle mortgaged and to use it full time on his government job during the period of amortizations;

8. The Mortgagor cannot sell, transfer, assign, encumber or mortgage the vehicle subject of his mortgage without prior written approval or consent of the Mortgagee;

9. That should the Mortgagor seeks, transfers to another office, resigns or be separated or dies, the mortgagee is authorized to take all measures to ensure recovery of the unpaid balance, including repossession and foreclosure of the Chattel Mortgage;

10. That should the Mortgagor violate the terms of the promissory note, for non-payment of two (2) consecutive monthly installments or should he violate the terms of the contract regarding the use of the motor vehicle, or violate the rules, policy and guidelines of the Mortgagee regarding the Special Vehicle Loan Fund, the Mortgagee is authorized to take immediate possession of the vehicle mortgaged;

11.That the Mortgagor, shall not remove or transfer the motorcycle mortgaged outside the province of ____________________________, his place of assignment without the previous written authority of the Mortgagee;

12.The Mortgagor shall shoulder the expenses of registration of the motorcycle including registration fees of the mortgaged property with the Chattel Mortgage Registry and the Bureau of Land Transportation;

In cases where the

MORTGAGEE

took immediate possession of the property mortgaged, the

MORTGAGOR

is given a thirty (30) day grace period counted from the date

MORTGAGEE

took immediate possession of the vehicle mortgaged to pay all the oustanding balance.

After the 30 day grace period had lapsed and still the outstanding obligation has not been paid, the property, mortgaged may be foreclosed,

The property mortgaged having been foreclosed, all monthly installments paid by the

MORTGAGOR

shall be considered as monthly rentals for the use of the vehicle and as such, it will not be considered for purposes of determining the outstanding principal obligation.

If the

MORTGAGOR,

his heirs, executors, administrators or assigns shall well and truly perform the full obligation in accordance with the terms of the promissory note secured by the

MORTGAGEE

this contract and the rules, regulations and policies of the

MORTGAGEE

, then this mortgage shall be considered null and void. Otherwise, it shall remain in full force and effect and enforceable in the manner provided herein.

IN WITNESS WHEREOF,

the

MORTAGOR

and the

MORTGAGEE

have hereunto signed this instrument at the place and on the date written above.

National Agricultural & Fishery Council

by:

____________________________ _____________________________

MORTGAGOR MORTGAGEE

Signed in the presence of:

____________________________ ____________________________

(Witness) (Witness)

A C K N O W L E D G M E N T

Republic of the Philippines)

____________________; S.S.

Before me, at ______________________________________________ in the province of ____________________________________, Philippines this ____ day of __________________ , 19____, personally appeared ____________________________ known as the

MORTGAGOR

with Residence Certificate No. A & B _____________________________ issued at ___________________ with Tax Acct. No. ________________________________ and _______________ representing the

NATIONAL AGRICULTURAL & FISHERY COUNCIL (NAFC)

known as

MORTGAGEE

with Residence Certificate No. A & B ______________ and (

NAFC

)

known as

MORTGAGEE

issued at Quezon City on _____________________ with Tax Acct. No. _________ the parties who signed the foregoing Affidavit of Good Faith and made oath to the truth thereof.

_________________________________

(Notary Public)

Until December _____________________

Doc. No. ________

Page No. ________

Book No. ________

Series of 19 ______