3. Several merchants want to embark in a joint venture and engaged you as their company consultant. They want to source out financial accommodations by way of direct investments and/or loans for their capitalization requirements. Your opinion as their company consultant is solicited on the following various questions that may arise:

a. In case the company will use real property as collateral for a loan, is registration in the Registry of Property necessary for the validity and enforceability of a contract of real estate mortgage?

b. In case the company will use chattels as collateral for a loan, is registration of a chattel mortgage in the Chattel Mortgage

Register essential for the validity and enforceability of the contract?

c. In case the company have machineries and equipment permanently attached to the land and building owned by another person, can the company make use of the said machineries and equipment as collaterals in a real estate mortgage?

d. In case your company will not be able to repay its loan as may be stipulated in the contract of real mortgage and chattel mortgage, respectively, and foreclosure was conducted against said properties, would your company have the right to redeem? If so, for how long would such right be exercised?

e. If your company would suffer financial liquidity problems but is not yet insolvent, although the management foresees its inability to pay its obligations as they fall due, what do you propose to be done, and how it would be done? In outline form, please provide the steps/procedures to be undertaken.

f. In case your company is insolvent, can the - (1) individual stockholders, (2) creditors, or (3) any officer of the company- file an insolvency petition?

g. Assuming that there are pending suits against your company, what would be the effect of filing an insolvency proceeding on such pending suits?