OCA CIRCULAR NO. 93-2004, August 04, 2004

Pursuant to the Resolution of the Third Division of the Supreme
‘Court dated 05 April 2004 and to give notice to the concern raised by
the Government Service Insurance System (GSIS) to expedite extrajudicial
foreclosure cases filed in court, we wish to remind all concerned to
the pertinent provisions of Administrative Circular No. 3-98, to wit:

“2. No written request/petition for extrajudicial foreclosure of
mortgages, real or chattel, shall be acted upon by the Clerk of Court,
as Ex-Officio Sheriff, without the corresponding filing fee having been
paid and the receipt thereof attached to the request/petition as
provided for in Sec. 7 (c), of Rule 141 of the Rules of Court.

3. . No certificate of sale shall be issued in favor of the
highest bidder until all fees provided for in the aforementioned
sections and paragraph 3 of Section 9 (I) of Rule 141 of the Rules of
Court shall have been paid. The . sheriff shall attach to the records of
the case a certified copy of the Official Receipt of the payment of the
fees and shall note the O.R. number in the duplicate of the Certificate
of Sale attached to the records of the case.”

Moreover, to settle any queries as to the status of
exemption from payment of docket and legal fees of government entitles,
Section 21, Rule 141 of the Rules of court explicitly provides:

“Sec. 21. Government exempt. – The
Republic the Philippines, its agencies and instrumentalities, are
exempt from paying the legal fees provided in this rule. Local
governments and government-owned of controlled corporations with or without independent charters are not except from paying such fees.

Likewise, to attain the purpose of Presidential Decree No. 385, strict observance shold likewise be given to Section 3 thereof:

“SECTION 3. Upon the application for foreclosure of
the collateral of delinquent borrowes, whether judicailly or
extrajudicially, by any government financial institution, the court
and/or officials concerned shall immediately act and give priority to the
same and schedule the publication thereof within Five (5) days from
receipt of the application, the auction sale to be held not later than
ten (10) days from date of the last publication. The Certificate of Sale
must be issued on the date of sale and the same must be registered by
the Register of Deeds concerned not later than five (5) days after
submission of the Certificate of Sale.”

Finally, judges are hereby enjoined to exercise
utmost caution, prudence, and judiciousness in Issuance of temporary
Restraining Orders and Writs of Preliminary Injunctions mandated by
Administrative Circular No. 07-99, taking into account that through the
later categorically prohibits courts involving infrastructure and
natural resources development projects of, and public utilities operated
by the government, it may apply with equal force to foreclosure
proceedings initiated by government financial institutions.

For guidance of all concerned.

04 August 2004.