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ARTICLE 319.

ELEMENTS of SELLING OR PLEDGING PERSONAL PROPERTY
ALREADY PLEDGED:
1. That personal property is already pledged under the terms
   of the Chattel Mortgage Law;
2. That the offender, who is the mortgagor of such property,
   sells or pledges the same or any part thereof; and
3. That there is no consent of the mortgagee written on the
   back of the mortgage and noted on the record thereof in the
   office of the register of deeds.


ELEMENTS of KNOWINGLY REMOVING MORTGAGED PERSONAL PROPERTY:
1. That personal property is mortgaged under the Chattel
   Mortgage Law;
2. That the offender knows that such property is so mortgaged;
3. That he removes such mortgaged personal to any province or
   city other than the one in which it was located at the time
   of the execution of the mortgage;
4. That the removal is permanent; and
5. That there is no written consent of the mortgagee or his
   executors, administrator or assignees to such removal.


The object of the Chattel Mortgage Law is to give the
necessary sanction to the statute, so that mortgage debtors
may be deterred from violating its provisions and
mortgage creditors may be protected against loss of
inconvenience from wrongful removal or sale of
mortgaged property.

Chattel mortgage must be valid and subsisting. If chattel
mortgage does not contain an affidavit of good faith
and is not registered, it is void and cannot be prosecuted
under Art 319

A person other than the mortgagor who removed the property
to another province, knowing it to be mortgaged,
may be liable.

The removal of the mortgaged personal property must be
coupled with intent to defraud. No felonious intent if
transfer of personal property is due to change of residence.

If the mortgagee opted to file for collection, not
foreclosure, abandoning the mortgage as basis for relief,
the removal of property to another province is not a
violation of Art 319 par1