The LTO Memorandum Circular No. 2017-2062 establishes guidelines for the initial registration and annotation of mortgages and other liens on motor vehicles in the Philippines. It mandates that a certified true copy of the notarized Deed of Chattel Mortgage is required for initial registration. The memorandum also introduces an alarm system to prevent unauthorized transfers of ownership, directing offices to check for any alarms before proceeding with ownership changes. Additionally, it specifies the necessary documentation for the annotation of mortgages and instructs that such transactions should occur at the nearest District Office to the vehicle owner's residence. Prior conflicting orders are superseded by this circular, which is effective immediately.
December 15, 2016
LTO MEMORANDUM CIRCULAR NO. 2017-2062
| TO | : | All Regional Directors, Assistant Regional Directors, Heads of New Registration Unit, Regional Office Heads of District/Extension Offices and All Concerned |
| SUBJECT | : | Guidelines to be Observed from the Initial Registration to Annotation of Mortgage and Other Liens or Encumbrances |
Pursuant to the provisions of Section 5(e) of R.A. 4136, as amended, and in order to address irregularities such as "transfer of ownership" that occurs after initial registration to the time that annotation is transacted, the following regulations governing the initial registration to annotation of chattel mortgage and other liens or encumbrances are hereby promulgated for the guidance and observance of all concerned.
1. Certified true copy of the notarized Deed of Chattel Mortgage is hereby required for initial registration of motor vehicle with mortgage and other liens or encumbrances.
2. The New Registration Unit (NRU), Regional Office shall effect the "ALARM" in the system. In the alarm summary, the Engine Number, Chassis Number and Plate Number shall be encoded under the alarm data entry. The remarks "With pending document from Registry of Deeds" shall likewise be encoded.
3. All District/Extension Offices are instructed to strictly observe the procedures for transfer of ownership specifically if the MV records are with the Regional Office. The evaluator shall check if there is an alarm in the system using the LETAS facility by retrieving the records using the engine number, chassis number and/or plate number indicated in the Certificate of Registration. If alarm appears in the system, transfer of ownership should not proceed.
4. To lift the alarm, certified. true copies of Certificate of Chattel Mortgage Contract duly stamped by the Registry of Deeds and its Official Receipt of recording fee shall be submitted to the NRU.
5. To avoid complaints from clients upon cancellation, the annotation of mortgage shall be transacted at the District Office nearest to the residence or address of the motor vehicle owner.
5.1 Documentary Requirements for Annotation of Mortgage: DaIAcC
• Original Certificate of Registration
• Latest Official Receipt of MVUC and other fees
• Chattel Mortgage Contract duly stamped by the Registry of Deeds
• Official Receipt of annotation from the Registry of Deeds
• Motor Vehicle Inspection Report (MVIR) if transacted after one (1) year from date of initial registration
• Photocopy of valid IDs
Prior orders/issuances inconsistent herewith are hereby superseded.
For immediate compliance.
(SGD.) EDGAR C. GALVANTEAssistant Secretary
Guidelines to be Observed from the Initial Registration to Annotation of Mortgage and Other Liens or Encumbrances, LTO Memorandum Circular No. 2017-2062, Dec 15, 2016 (Philippines)
Guidelines to be Observed from the Initial Registration to Annotation of Mortgage and Other Liens or Encumbrances, LTO Memorandum Circular No. 2017-2062 (Phil. 2016)
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