DEED OF CHATTEL MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

That this Deed of Chattel Mortgage, made and entered into by and between:

GUINEVERE C. BECK of legal age, Filipino, married to WILL

N. BECK and residing San Vicente, Buhangin, Davao City,
Philippines, hereinafter called the MORTGAGOR;

- and -

ERVEN JOHN P. CLAROS of legal age, Filipino, married to

NICOLE S. CLAROS, and residing at #18 Scorpio Street, GSIS
Village, Matina, Davao City, hereinafter referred to as the
MORTGAGEE;

WITNESSETH:

That for and in consideration of the loan of FOUR HUNDRED THOUSAND

(P400,000.00) PESOS, Philippine Currency, which the MORTGAGOR has obtained
from the MORTGAGEE as per promissory note executed by the former in favor of the
latter, and to secure the payment of the same, the MORTGAGOR hereby transfers and
conveys by way of chattel mortgage unto the MORTGAGEE, his heirs, successors, or
assigns, the following Motor Vehicles described as follows:

MAKE/TYPE : Volkswagen Beetle

MOTOR NUMBER : AD-532360
CHASSIS NUMBER : 1122895972
PLATE NUMBER : NLY-886
COLOR : WHITE

MAKE/TYPE : Toyota Lite Ace Mini Bus

MOTOR NUMBER : 5K-1122285
CHASSIS NUMBER : KM30-9009093
PLATE NUMBER : LCH-743
COLOR : WHITE

MAKE/TYPE : Toyota Lite Ace Mini Bus

MOTOR NUMBER : 5K-1025485
CHASSIS NUMBER : KM30-9003326
PLATE NUMBER : TAV-905
COLOR : MAROON

That the aforesaid Promissory Note is quoted below as follows:

“PROMISSORY NOTE

“P400,000.00 January 5, 2020

“For value received, we, the undersigned, jointly

and severally promise to pay to the order of ERVEN
JOHN P. CLAROS at his residence at #18 Scorpio Street,
GSIS Village Matina, Davao City, the sum of PESOS:
FOUR HUNDRED THOUSAND PESOS ONLY,
Philippine Currency, THREE HUNDRED SIXTY-FIVE
DAYS (365) days after date of this Promissory Note with
Page 1 of 5
 interest thereon at the rate of one & one-half (1.5%) percent
per month.

“In case of non-payment of this Promissory Note on

maturity, we hereby agree to pay an additional amount
equivalent to two (2%) percent per month based on the total
unpaid balance as penalty until fully paid. Any fraction of a
month shall be considered as one (1) month for purposes of
computing the two (2%) penalty rate;

“Further, in case of NON-PAYMENT of this Note

on maturity, we hereby jointly and severally agree to pay,
by way of LIQUIDATED DAMAGES, AN
ADDITIONAL AMOUNT EQUIVALENT TO 1.5%
PER MONTH OF THE PRINCIPAL SUM, but in no
case be less than P5,000.00, until fully paid, and if this
Note is referred to an attorney-at-law for collection, we
shall pay the additional sum of 25% of the total amount due
as attorney’s fees, but in no case be less than P10,000.00
exclusive of costs and other judicial and extrajudicial
expenses. Venue of any suit arising from this Note is
stipulated to be exclusively at Davao City only.

“In case of judicial execution of this obligation, we

waive our rights under Section 13, Rule 39 of the 1997
Rules of Civil Procedure of the Philippines.

(sgd.) “PAULA YSABELLE D. AVELINO”

(sgd.) “Paulo B. Avelino”

This chattel mortgage is constituted under the following conditions:

1. That the MORTGAGOR shall pay for the documentary stamps necessary for
this transaction and the fees for the registration of this document and any other
documents related therewith;

2. That the MORTGAGOR shall not sell or dispose of the mortgaged Motor
Vehicle nor encumber it with a second mortgage without the written consent of the
MORTGAGEE first being obtained.

3. That during the term and existence of this chattel mortgage, the MORTGAGOR
shall insure or cause to be insured at all times and at his own expense the said mortgaged
Motor Vehicles against loss or damage by fire for their full insurable value with reputable
insurance company and shall deliver the insurance policy to the MORTGAGEE.

4. That upon default to fully pay the aforesaid sum of money herein secured by
this mortgage within the period of THREE HUNDRED SIXTY-FIVE (365) DAYS from
the execution of this mortgage, the MORTGAGEE shall have the right, at his election, to
foreclose this mortgage, and to that end the MORTGAGEE is hereby appointed the
attorney-in-fact of the MORTGAGOR with full power of substitution to sell/dispose of
the aforesaid mortgaged Motor Vehicles to the highest bidder at public auction or private
sale in accordance with the provisions of existing laws.

5. That in case of insolvency of the MORTGAGOR as judicially decreed, the

obligation herein secured shall at once become due and payable to the MORTGAGEE;
 6. That in case the amount realized from the public auction or private sale of the
mortgaged Motor Vehicles would be insufficient to cover the total indebtedness of the
MORTGAGOR, it is expressly agreed that the MORTGAGOR shall pay the balance
within ONE MONTH after such sale, and that, in case of his failure to do so, the
MORTGAGEE shall have the right of action against the MORTGAGOR for the same.

7. That the remedy of the MORTGAGEE under the powers of sale hereby
conferred upon him shall be and is in addition to and cumulative with such right of action
as the MORTGAGEE may have in accordance with the present or any future laws of the
Republic of the Philippines.

8. That should it become necessary for the MORTGAGEE to institute foreclosure

proceedings or to take any legal action to foreclose this mortgage, the MORTGAGOR
shall pay to the MORTGAGEE for and as attorney’s fees a sum equivalent to TWENTY-
FIVE PERCENT (25%) of the total indebtedness then unpaid, but in no case be less than
TEN THOUSAND (P10,000.00) PESOS, exclusive of costs or fees allowed by law.

9. That, should the MORTGAGEE become involved in any litigation or litigations

which may have relation with any or all of the motor vehicles mortgaged by virtue of this
instrument, all the expenses of the MORTGAGEE in such litigation or litigations,
including a reasonable amount of attorney’s fees shall be paid by the MORTGAGOR, and
this mortgage shall also stand as security therefor.

10. That if at any time the MORTGAGOR shall fail to comply with any of the
conditions and stipulations herein agreed, then the MORTGAGEE may, at his discretion,
declare this mortgage due, payable, and defaulted and the MORTGAGEE may
immediately foreclose this mortgage judicially, or extrajudicially in accordance with law,
and in case of foreclosure.

11. That effective upon the breach of any condition or stipulation of this
mortgage, or upon the cancellation of this mortgage for causes of whatever nature not
attributable to the MORTGAGEE, and in addition to the remedies herein stipulated, the
MORTGAGEE is hereby appointed attorney-in-fact of the MORTGAGOR with full
powers and authority, with the use of force if necessary, to take exclusive possession of
the mortgaged Motor Vehicles, without the necessity of any judicial order; or the
MORTGAGEE may take any other legal action that may be deemed necessary; and
perform any other act which the MORTGAGEE may deem convenient for the proper
administration of the mortgaged Motor Vehicles. The power herein granted shall not be
revoked during the lifetime of this mortgage, and all acts that may be executed by the
MORTGAGEE by virtue of that power are hereby ratified.

12. That it is of the essence of this contract that if the MORTGAGOR fails to pay
the obligation then this mortgage shall be foreclosed and the above-mentioned mortgaged
Motor Vehicles shall be sold in accordance with law; but, if the MORTGAGOR pays said
obligation in full then this mortgage shall be of no effect.

13. That in case of judicial execution of this obligation or any part of it, the
MORTGAGOR waives all his rights under the provisions of Section 13 of Rule 39 of the
1997 Rules of Civil Procedure regarding properties exempt from execution.

IN WITNESS WHEREOF, the parties have hereunto signed this mortgage at

Davao City, Philippines, this 12th day of January 2020.
 GUINEVERE C. BECK ERVEN JOHN P. CLAROS
Mortgagor Mortgagee

WITH MY MARITAL CONSENT: WITH MY MARITAL CONSENT:

WILL N. BECK NICOLE S. CLAROS

Mortgagor’s Husband Mortgagee’s Wife

SIGNED IN THE PRESENCE OF:

_____________________________and_________________________________

AFFIDAVIT OF GOOD FAITH

We severally swear that this chattel mortgage is made for the purpose of securing
the obligation specified herein above, and for no other purpose, and that the same is a
valid obligation and one not entered into for the purpose of fraud.

Davao City, Philippines, January 12, 2020.

GUINEVERE C. BECK ERVEN JOHN P. CLAROS

Mortgagor Mortgagee

WITH MY MARITAL CONSENT: WITH MY MARITAL CONSENT:

WILL N. BECK NICOLE S. CLAROS

Mortgagor’s Husband Mortgagee’s Wife
 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF DAVAO . . . . . . . . . . . . . )S.S.

BEFORE ME, a Notary Public for and in the City of Davao, personally appeared:

Name SSS I.D. No. Date & Place Issued

PAULA YSABELLE D. AVELINO 9203 03/01/10; Davao City
VALENCIO T. REYES 1453 01/15/10; Davao City

all known to me to be the same persons who executed the foregoing instrument and
acknowledged to me that the same is their free and voluntary act and deed. This
instrument relates to a Deed of Chattel Mortgage involving THREE (3) Motor Vehicles
consisting of six (6) pages including this page whereon this acknowledgment is written
and signed by the parties and their instrumental witnesses on each and every page
thereof.

WITNESS MY HAND AND SEAL this 12th day of January 2020 at Davao City.

Doc. No. _____ XICILLI KRISHNA P. DOSDOS

Page No. _____ Notary Public for Davao City
Book No. _____ Commission Serial No. 055-2015
Series of 2020. Until December 31, 2021
Attorney’s Roll No. 22222
PTR NO. 0843813; 01-05-18; Davao City
IBP O.R. No. 875030; 01-05-18; Davao
City
MCLE Compliance No. III-0000492 issued
on Aug. 19, 2019