A.
LOANS
REPUBLIC ACT No. 7653: THE NEW CENTRAL BANK ACT
CHAPTER II – THE BANGKO SENTRAL AND THE MEANS OF PAYMENT
Section 60. Legal Character. - Checks representing demand deposits do not have legal
tender power and their acceptance in the payment of debts, both public and private, is
at the option of the creditor: Provided, however, That a check which has been cleared
and credited to the account of the creditor shall be equivalent to a delivery to the
creditor of cash in an amount equal to the amount credited to his account.
CIRCULAR NO. 537
The maximum amount of coins to be considered as legal tender is adjusted as follows:
1. One thousand pesos (P1,000.00) for denominations of 1-Piso, 5-Piso and 10-
Piso coins; and
2. One hundred pesos (P100.00) for denominations of 1-sentimo, 5-sentimo,
10-sentimo, and 25-sentimo coins.
This Circular shall take effect after fifteen (15) days following its publication in the
Official Gazette or in a newspaper of general circulation.
BSP CIRCULAR NO. 799 (June 21, 2013)
In the absence of a contract expressly providing for a different rate, the rate of interest
for the loan or forbearance of any money, goods or credits and the rate allowed in
judgments has been reduced from twelve percent (12%) to six percent (6%) per annum.
D. REM
RULE 68: Foreclosure of Real Estate Mortgage
Section 1. Complaint in action for foreclosure. — In an action for the foreclosure of a
mortgage or other encumbrance upon real estate, the complaint shall set forth the date
and due execution of the mortgage; its assignments, if any; the names and residences of
the mortgagor and the mortgagee; a description of the mortgaged property; a
statement of the date of the note or other documentary evidence of the obligation
secured by the mortgage, the amount claimed to be unpaid thereon; and the names and
residences of all persons having or claiming an interest in the property subordinate in
right to that of the holder of the mortgage, all of whom shall be made defendants in the
action.
Section 2. Judgment on foreclosure for payment or sale. — If upon the trial in such
action the court shall find the facts set forth in the complaint to be true, it shall
ascertain the amount due to the plaintiff upon the mortgage debt or obligation,
including interest and other charges as approved by the court, and costs, and shall
render judgment for the sum so found due and order that the same be paid to the court
or to the judgment obligee within a period of not less than ninety (90) days nor more
than one hundred twenty (120) days from the entry of judgment, and that in default of
such payment the property shall be sold at public auction to satisfy the judgment.
Section 3. Sale of mortgaged property; effect. — When the defendant, after being
directed to do so as provided in the next preceding section, fails to pay the amount of
the judgment within the period specified therein, the court, upon motion, shall order
the property to be sold in the manner and under the provisions of Rule 39 and other
regulations governing sales of real estate under execution. Such sale shall not affect the
rights of persons holding prior encumbrances upon the property or a part thereof, and
when confirmed by an order of the court, also upon motion, it shall operate to divest
the rights in the property of all the parties to the action and to vest their rights in the
purchaser, subject to such rights of redemption as may be allowed by law.
Upon the finality of the order of confirmation or upon the expiration of the period of
redemption when allowed by law, the purchaser at the auction sale or last
redemptioner, if any, shall be entitled to the possession of the property unless a third
party is actually holding the same adversely to the judgment obligor. The said purchaser
or last redemptioner may secure a writ of possession, upon motion, from the court
which ordered the foreclosure.
Section 4. Disposition of proceeds of sale. — The amount realized from the foreclosure
sale of the mortgaged property shall, after deducting the costs of the sale, be paid to
the person foreclosing the mortgage, and when there shall be any balance or residue,
after paying off the mortgage debt due, the same shall be paid to junior encumbrancers
in the order of their priority, to be ascertained by the court, or if there be no such
encumbrancers or there be a balance or residue after payment to them, then to the
mortgagor or his duly authorized agent, or to the person entitled to it.
Section 5. How sale to proceed in case the debt is not all due. — If the debt for which
the mortgage or encumbrance was held is not all due as provided in the judgment as
soon as a sufficient portion of the property has been sold to pay the total amount and
the costs due, the sale shall terminate; and afterwards as often as more becomes due
for principal or interest and other valid charges, the court may, on motion, order more
to be sold. But if the property cannot be sold in portions without prejudice to the
parties, the whole shall be ordered to be sold in the first instance, and the entire debt
and costs shall be paid, if the proceeds of the sale be sufficient therefor, there being a
rebate of interest where such rebate is proper.
Section 6. Deficiency judgment. — If upon the sale of any real property as provided in
the next preceding section there be a balance due to the plaintiff after applying the
proceeds of the sale, the court, upon motion, shall render judgment against the
defendant for any such balance for which, by the record of the case, he may be
personally liable to the plaintiff, upon which execution may issue immediately if the
balance is all due at the time of the rendition of the judgment; otherwise; the plaintiff
shall be entitled to execution at such time as the balance remaining becomes due under
the terms of the original contract, which time shall be stated in the judgment.
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Section 7. Registration. — A certified copy of the final order of the court confirming the
sale shall be registered in the registry of deeds. If no right of redemption exists, the
certificate of title in the name of the mortgagor shall be cancelled, and a new one issued
in the name of the purchaser.
Where a right of redemption exists, the certificate of title in the name of the mortgagor
shall not be cancelled, but the certificate of sale and the order confirming the sale shall
be registered and a brief memorandum thereof made by the registrar of deeds upon the
certificate of title. In the event the property is redeemed, the deed of redemption shall
be registered with the registry of deeds, and a brief memorandum thereof shall be
made by the registrar of deeds on said certificate of title.
If the property is not redeemed, the final deed of sale executed by the sheriff in favor of
the purchaser at the foreclosure sale shall be registered with the registry of deeds;
whereupon the certificate of title in the name of the mortgagor shall be cancelled and a
new one issued in the name of the purchaser.
Section 8. Applicability of other provisions. — The provisions of sections 31, 32 and 34 of
Rule 39 shall be applicable to the judicial foreclosure of real estate mortgages under this
Rule insofar as the former are not inconsistent with or may serve to supplement the
provisions of the latter.
ACT NO. 3135 - AN ACT TO REGULATE THE SALE OF PROPERTY UNDER SPECIAL
POWERS INSERTED IN OR ANNEXED TO REAL-ESTATE MORTGAGES
Section 1. When a sale is made under a special power inserted in or attached to any
real-estate mortgage hereafter made as security for the payment of money or the
fulfillment of any other obligation, the provisions of the following election shall govern
as to the manner in which the sale and redemption shall be effected, whether or not
provision for the same is made in the power.
Sec. 2. Said sale cannot be made legally outside of the province in which the property
sold is situated; and in case the place within said province in which the sale is to be
made is subject to stipulation, such sale shall be made in said place or in the municipal
building of the municipality in which the property or part thereof is situated.
Sec. 3. Notice shall be given by posting notices of the sale for not less than twenty days
in at least three public places of the municipality or city where the property is situated,
and if such property is worth more than four hundred pesos, such notice shall also be
published once a week for at least three consecutive weeks in a newspaper of general
circulation in the municipality or city.
Sec. 4. The sale shall be made at public auction, between the hours or nine in the
morning and four in the afternoon; and shall be under the direction of the sheriff of the
province, the justice or auxiliary justice of the peace of the municipality in which such
sale has to be made, or a notary public of said municipality, who shall be entitled to
collect a fee of five pesos each day of actual work performed, in addition to his
expenses.
Sec. 5. At any sale, the creditor, trustee, or other persons authorized to act for the
creditor, may participate in the bidding and purchase under the same conditions as any
other bidder, unless the contrary has been expressly provided in the mortgage or trust
deed under which the sale is made.
Sec. 6. In all cases in which an extrajudicial sale is made under the special power
hereinbefore referred to, the debtor, his successors in interest or any judicial creditor or
judgment creditor of said debtor, or any person having a lien on the property
subsequent to the mortgage or deed of trust under which the property is sold, may
redeem the same at any time within the term of one year from and after the date of the
sale; and such redemption shall be governed by the provisions of sections four hundred
and sixty-four to four hundred and sixty-six, inclusive, of the Code of Civil Procedure, in
so far as these are not inconsistent with the provisions of this Act.
Sec. 7. In any sale made under the provisions of this Act, the purchaser may petition the
Court of First Instance of the province or place where the property or any part thereof is
situated, to give him possession thereof during the redemption period, furnishing bond
in an amount equivalent to the use of the property for a period of twelve months, to
indemnify the debtor in case it be shown that the sale was made without violating the
mortgage or without complying with the requirements of this Act. Such petition shall be
made under oath and filed in form of an ex parte motion in the registration or cadastral
proceedings if the property is registered, or in special proceedings in the case of
property registered under the Mortgage Law or under section one hundred and ninety-
four of the Administrative Code, or of any other real property encumbered with a
mortgage duly registered in the office of any register of deeds in accordance with any
existing law, and in each case the clerk of the court shall, upon the filing of such petition,
collect the fees specified in paragraph eleven of section one hundred and fourteen of
Act Numbered Four hundred and ninety-six, as amended by Act Numbered Twenty-
eight hundred and sixty-six, and the court shall, upon approval of the bond, order that a
writ of possession issue, addressed to the sheriff of the province in which the property is
situated, who shall execute said order immediately.
Sec. 8. The debtor may, in the proceedings in which possession was requested, but not
later than thirty days after the purchaser was given possession, petition that the sale be
set aside and the writ of possession cancelled, specifying the damages suffered by him,
because the mortgage was not violated or the sale was not made in accordance with the
provisions hereof, and the court shall take cognizance of this petition in accordance with
the summary procedure provided for in section one hundred and twelve of Act
Numbered Four hundred and ninety-six; and if it finds the complaint of the debtor
justified, it shall dispose in his favor of all or part of the bond furnished by the person
who obtained possession. Either of the parties may appeal from the order of the judge
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in accordance with section fourteen of Act Numbered Four hundred and ninety-six; but
the order of possession shall continue in effect during the pendency of the appeal.
Sec. 9. When the property is redeemed after the purchaser has been given possession,
the redeemer shall be entitled to deduct from the price of redemption any rentals that
said purchaser may have collected in case the property or any part thereof was rented;
if the purchaser occupied the property as his own dwelling, it being town property, or
used it gainfully, it being rural property, the redeemer may deduct from the price the
interest of one per centum per month provided for in section four hundred and sixty-
five of the Code of Civil Procedure.
RULE 39: Execution, Satisfaction and Effect of Judgments
Section 27. Who may redeem real property so sold. — Real property sold as provided in
the last preceding section, or any part thereof sold separately, may be redeemed in the
manner hereinafter provided, by the following persons:
(a) The judgment obligor; or his successor in interest in the whole or any part of the
property;
(b) A creditor having a lien by virtue of an attachment, judgment or mortgage on the
property sold, or on some part thereof, subsequent to the lien under which the property
was sold. Such redeeming creditor is termed a redemptioner.
Section 28. Time and manner of, and amounts payable on, successive redemptions;
notice to be given and filed. — The judgment obligor, or redemptioner, may redeem the
property from the purchaser, at any time within one (1) year from the date of the
registration of the certificate of sale, by paying the purchaser the amount of his
purchase, with the per centum per month interest thereon in addition, up to the time of
redemption, together with the amount of any assessments or taxes which the purchaser
may have paid thereon after purchase, and interest on such last named amount at the
same rate; and if the purchaser be also a creditor having a prior lien to that of the
redemptioner, other than the judgment under which such purchase was made, the
amount of such other lien, with interest.
Property so redeemed may again be redeemed within sixty (60) days after the last
redemption upon payment of the sum paid on the last redemption, with two per
centum thereon in addition and the amount of any assessments or taxes which the last
redemptioner may have paid thereon after redemption by him, with interest on such
last named amount, and in addition, the amount of any liens held by said last
redemptioner prior to his own, with interest. The property may be again, and as often as
a redemptioner is so disposed, redeemed from any previous redemptioner within sixty
(60) days after the last redemption, on paying the sum paid on the last previous
redemption, with two per centum thereon in addition, and the amounts of any
assessments or taxes which the last previous redemptioner paid after the redemption
thereon, with interest thereon, and the amount of any liens held by the last
redemptioner prior to his own, with interest.
Written notice of any redemption must be given to the officer who made the sale and a
duplicate filed with the registry of deeds of the place, and if any assessments or taxes
are paid by the redemptioner or if he has or acquires any lien other than that upon
which the redemption was made, notice thereof must in like manner be given to the
officer and filed with the registry of deeds; if such notice be not filed, the property may
be redeemed without paying such assessments, taxes, or liens.
Section 29. Effect of redemption by judgment obligor, and a certificate to be delivered
and recorded thereupon; to whom payments on redemption made. — If the judgment
obligor redeems he must make the same payments as are required to effect a
redemption by a redemptioner, whereupon, no further redemption shall be allowed and
he is restored to his estate. The person to whom the redemption payment is made must
execute and deliver to him a certificate of redemption acknowledged before a notary
public or other officer authorized to take acknowledgments of conveyances of real
property. Such certificate must be filed and recorded in the registry of deeds of the
place in which the property is situated and the registrar of deeds must note the record
thereof on the margin of the record of the certificate of sale. The payments mentioned
in this and the last preceding sections may be made to the purchaser or redemptioner,
or for him to the officer who made the sale.
Section 30. Proof required of redemptioner. — A redemptioner must produce to the
officer, or person from whom he seeks to redeem, and serve with his notice to the
officer a copy of the judgment or final order under which he claims the right to redeem,
certified by the clerk of the court wherein the judgment or final order is entered, or, if
he redeems upon a mortgage or other lien, a memorandum of the record thereof,
certified by the registrar of deeds, or an original or certified copy of any assignment
necessary to establish his claim; and an affidavit executed by him or his agent, showing
the amount then actually due on the lien. (32a)
Section 31. Manner of using premises pending redemption; waste restrained. — Until
the expiration of the time allowed for redemption, the court may, as in other proper
cases, restrain the commission of waste on the property by injunction, on the
application of the purchaser or the judgment obligee, with or without notice; but it is
not waste for a person in possession of the property at the time of the sale, or entitled
to possession afterwards, during the period allowed for redemption, to continue to use
it in the same manner in which it was previously used, or to use it in the ordinary course
of husbandry; or to make the necessary repairs to buildings thereon while he occupies
the property.
Section 32. Rents, earnings and income of property pending redemption. — The
purchaser or a redemptioner shall not be entitled to receive the rents, earnings and
income of the property sold on execution, or the value of the use and occupation
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thereof when such property is in the possession of a tenant. All rents, earnings and
income derived from the property pending redemption shall belong to the judgment
obligor until the expiration of his period of redemption.
Section 33. Deed and possession to be given at expiration of redemption period; by
whom executed or given. — If no redemption be made within one (1) year from the
date of the registration of the certificate of sale, the purchaser is entitled to a
conveyance and possession of the property; or, if so redeemed whenever sixty (60) days
have elapsed and no other redemption has been made, and notice thereof given, and
the time for redemption has expired, the last redemptioner is entitled to the
conveyance and possession; but in all cases the judgment obligor shall have the entire
period of one (1) year from the date of the registration of the sale to redeem the
property. The deed shall be executed by the officer making the sale or by his successor
in office, and in the latter case shall have the same validity as though the officer making
the sale had continued in office and executed it.
Upon the expiration of the right of redemption, the purchaser or redemptioner shall be
substituted to and acquire all the rights, title, interest and claim of the judgment obligor
to the property as of the time of the levy. The possession of the property shall be given
to the purchaser or last redemptioner by the same officer unless a third party adversely
to the judgment obligor.
RA 133: AN ACT TO AUTHORIZE THE MORTGAGE OF PRIVATE REAL PROPERTY IN
FAVOR OF ANY INDIVIDUAL, CORPORATION, OR ASSOCIATION SUBJECT TO CERTAIN
CONDITIONS
Section 1. Any provision of law to the contrary notwithstanding, private real property
may be mortgaged for a period not exceeding five years, renewable for another five, in
favor of any individual, corporation, or association, but the mortgagee or his successor
in interest, if disqualified to acquire or hold lands of the public domain in the
Philippines, shall not bid or take part in any sale of such real property as a consequence
of such mortgage.
RA 8791: AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND
OPERATIONS OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES
Section 47. Foreclosure of Real Estate Mortgage. - In the event of foreclosure, whether
judicially or extra-judicially, of any mortgage on real estate which is security for any loan
or other credit accommodation granted, the mortgagor or debtor whose real property
has been sold for the full or partial payment of his obligation shall have the right within
one year after the sale of the real estate, to redeem the property by paying the amount
due under the mortgage deed, with interest thereon at rate specified in the mortgage,
and all the costs and expenses incurred by the bank or institution from the sale and
custody of said property less the income derived therefrom. However, the purchaser at
the auction sale concerned whether in a judicial or extra-judicial foreclosure shall have
the right to enter upon and take possession of such property immediately after the date
of the confirmation of the auction sale and administer the same in accordance with law.
Any petition in court to enjoin or restrain the conduct of foreclosure proceedings
instituted pursuant to this provision shall be given due course only upon the filing by the
petitioner of a bond in an amount fixed by the court conditioned that he will pay all the
damages which the bank may suffer by the enjoining or the restraint of the foreclosure
proceeding. Notwithstanding Act 3135, juridical persons whose property is being sold
pursuant to an extrajudicial foreclosure, shall have the right to redeem the property in
accordance with this provision until, but not after, the registration of the certificate of
foreclosure sale with the applicable Register of Deeds which in no case shall be more
than three (3) months after foreclosure, whichever is earlier. Owners of property that
has been sold in a foreclosure sale prior to the effectivity of this Act shall retain their
redemption rights until their expiration
F. Chattel Mortgage
ACT NO. 1508 - AN ACT PROVIDING FOR THE MORTGAGING OF PERSONAL PROPERTY
AND FOR THE REGISTRATION OF THE MORTGAGES SO EXECUTED
Section 1. The short title of this Act shall be "The Chattel Mortgage Law."
Sec. 2. All personal property shall be subject to mortgage, agreeably to the provisions of
this Act, and a mortgage executed in pursuance thereof shall be termed chattel
mortgage.
Sec. 3. Chattel mortgage defined. — A chattel mortgage is a conditional sale of personal
property as security for the payment of a debt, or the performance of some other
obligation specified therein, the condition being that the sale shall be void upon the
seller paying to the purchaser a sum of money or doing some other act named. If the
condition is performed according to its terms the mortgage and sale immediately
become void, and the mortgagee is thereby divested of his title.
Sec. 4. Validity. — A chattel mortgage shall not be valid against any person except the
mortgagor, his executors or administrators, unless the possession of the property is
delivered to and retained by the mortgagee or unless the mortgage is recorded in the
office of the register of deeds of the province in which the mortgagor resides at the time
of making the same, or, if he resides without the Philippine Islands, in the province in
which the property is situated: Provided, however, That if the property is situated in a
different province from that in which the mortgagor resides, the mortgage shall be
recorded in the office of the register of deeds of both the province in which the
mortgagor resides and that in which the property is situated, and for the purposes of
this Act the city of Manila shall be deemed to be a province.
Sec. 5. Form. — A chattel mortgage shall be deemed to be sufficient when made
substantially in accordance with the following form, and shall be signed by the person or
persons executing the same, in the presence of two witnesses, who shall sign the
mortgage as witnesses to the execution thereof, and each mortgagor and mortgagee,
or, in the absence of the mortgagee, his agent or attorney, shall make and subscribe an
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affidavit in substance as hereinafter set forth, which affidavit, signed by the parties to
the mortgage as above stated, and the certificate of the oath signed by the authority
administering the same, shall be appended to such mortgage and recorded therewith.
FORM OF CHATTEL MORTGAGE AND AFFIDAVIT.
"This mortgage made this ____ day of ______19____ by _______________, a resident
of the municipality of ______________, Province of ____________, Philippine Islands
mortgagor, to ____________, a resident of the municipality of ___________, Province
of ______________, Philippine Islands, mortgagee, witnesseth:
"That the said mortgagor hereby conveys and mortgages to the said mortgagee all of
the following-described personal property situated in the municipality of
______________, Province of ____________ and now in the possession of said
mortgagor, to wit:
(Here insert specific description of the property mortgaged.)
"This mortgage is given as security for the payment to the said ______, mortgagee, of
promissory notes for the sum of ____________ pesos, with (or without, as the case may
be) interest thereon at the rate of ___________ per centum per annum, according to
the terms of __________, certain promissory notes, dated _________, and in the words
and figures following (here insert copy of the note or notes secured).
"(If the mortgage is given for the performance of some other obligation aside from the
payment of promissory notes, describe correctly but concisely the obligation to be
performed.)
"The conditions of this obligation are such that if the mortgagor, his heirs, executors, or
administrators shall well and truly perform the full obligation (or obligations) above
stated according to the terms thereof, then this obligation shall be null and void.
"Executed at the municipality of _________, in the Province of ________, this _____ day
of 19_____
____________________
(Signature of mortgagor.)
"In the presence of
"_________________
"_________________
(Two witnesses sign here.)
FORM OF OATH.
"We severally swear that the foregoing mortgage is made for the purpose of securing
the obligation specified in the conditions thereof, and for no other purpose, and that
the same is a just and valid obligation, and one not entered into for the purpose of
fraud."
FORM OF CERTIFICATE OF OATH.
"At ___________, in the Province of _________, personally appeared ____________,
the parties who signed the foregoing affidavit and made oath to the truth thereof
before me.
"_____________________________"
(Notary public, justice of the peace, 1 or other officer, as the case may be.)
Sec. 6. Corporations. — When a corporation is a party to such mortgage the affidavit
required may be made and subscribed by a director, trustee, cashier, treasurer, or
manager thereof, or by a person authorized on the part of such corporation to make or
to receive such mortgage. When a partnership is a party to the mortgage the affidavit
may be made and subscribed by one member thereof.
Sec. 7. Descriptions of property. — The description of the mortgaged property shall be
such as to enable the parties to the mortgage, or any other person, after reasonable
inquiry and investigation, to identify the same.
If the property mortgaged be large cattle," as defined by section one of Act Numbered
Eleven and forty-seven, 2 and the amendments thereof, the description of said property
in the mortgage shall contain the brands, class, sex, age, knots of radiated hair
commonly known as remolinos, or cowlicks, and other marks of ownership as described
and set forth in the certificate of ownership of said animal or animals, together with the
number and place of issue of such certificates of ownership.
If growing crops be mortgaged the mortgage may contain an agreement stipulating that
the mortgagor binds himself properly to tend, care for and protect the crop while
growing, and faithfully and without delay to harvest the same, and that in default of the
performance of such duties the mortgage may enter upon the premises, take all the
necessary measures for the protection of said crop, and retain possession thereof and
sell the same, and from the proceeds of such sale pay all expenses incurred in caring for,
harvesting, and selling the crop and the amount of the indebtedness or obligation
secured by the mortgage, and the surplus thereof, if any shall be paid to the mortgagor
or those entitled to the same.
A chattel mortgage shall be deemed to cover only the property described therein and
not like or substituted property thereafter acquired by the mortgagor and placed in the
same depository as the property originally mortgaged, anything in the mortgage to the
contrary notwithstanding.
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Sec. 8. Failure of mortgagee to discharge the mortgage. — If the mortgagee, assign,
administrator, executor, or either of them, after performance of the condition before or If the sale includes any "large cattle," a certificate of transfer as required by section
after the breach thereof, or after tender of the performance of the condition, at or after sixteen of Act Numbered Eleven hundred and forty-seven 5 shall be issued by the
the time fixed for the performance, does not within ten days after being requested treasurer of the municipality where the sale was held to the purchaser thereof.
thereto by any person entitled to redeem, discharge the mortgage in the manner
provided by law, the person entitled to redeem may recover of the person whose duty it
is to discharge the same twenty pesos for his neglect and all damages occasioned
thereby in an action in any court having jurisdiction of the subject-matter thereof.

Sec. 9-12. (inclusive) 3

Sec. 13. When the condition of a chattel mortgage is broken, a mortgagor or person
holding a subsequent mortgage, or a subsequent attaching creditor may redeem the
same by paying or delivering to the mortgagee the amount due on such mortgage and
the reasonable costs and expenses incurred by such breach of condition before the sale
thereof. An attaching creditor who so redeems shall be subrogated to the rights of the
mortgagee and entitled to foreclose the mortgage in the same manner that the
mortgagee could foreclose it by the terms of this Act.

Sec. 14. Sale of property at public auction; Officer's return; Fees; Disposition of
proceeds. — The mortgagee, his executor, administrator, or assign, may, after thirty
days from the time of condition broken, cause the mortgaged property, or any part
thereof, to be sold at public auction by a public officer at a public place in the
municipality where the mortgagor resides, or where the property is situated, provided
at least ten days' notice of the time, place, and purpose of such sale has been posted at
two or more public places in such municipality, and the mortgagee, his executor,
administrator, or assign, shall notify the mortgagor or person holding under him and the
persons holding subsequent mortgages of the time and place of sale, either by notice in
writing directed to him or left at his abode, if within the municipality, or sent by mail if
he does not reside in such municipality, at least ten days previous to the sale.

The officer making the sale shall, within thirty days thereafter, make in writing a return
of his doings and file the same in the office of the register of deeds where the mortgage
is recorded, and the register of deeds shall record the same. The fees of the officer for
selling the property shall be the same as in the case of sale on execution as provided in
Act Numbered One hundred and ninety, 4 and the amendments thereto, and the fees of
the register of deeds for registering the officer's return shall be taxed as a part of the
costs of sale, which the officer shall pay to the register of deeds. The return shall
particularly describe the articles sold, and state the amount received for each article,
and shall operate as a discharge of the lien thereon created by the mortgage. The
proceeds of such sale shall be applied to the payment, first, of the costs and expenses of
keeping and sale, and then to the payment of the demand or obligation secured by such
mortgage, and the residue shall be paid to persons holding subsequent mortgages in
their order, and the balance, after paying the mortgages, shall be paid to the mortgagor
or person holding under him on demand.
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