Doctrine of mortgagee in good faith:

There is, however, a situation where, despite the fact that the mortgagor is not the
owner of the mortgaged property, his title being fraudulent, the mortgage
contract and any foreclosure sale arising there from are given effect by
reason of public policy. This is the doctrine of the mortgagee in good faith
based on the rule that all persons dealing with property covered by the
Torrens Certificates of Title, as buyers or mortgagees, are not required to
go beyond what appears on the face of the title. The public interest in
upholding the indefeasibility of a certificate of title, as evidence of lawful
ownership of the land or of any encumbrance thereon, protects a buyer or
mortgagee who, in good faith, relied upon what appears on the face of the
certificate of title.

Application:

Respondents however argue that PNB cannot be considered a mortgagee in

good faith as it failed to inspect the disputed property when offered to
it as security for the loan, which could have led it to discover the forged
instruments of sale.

In fine, there is no showing that petitioner PNB, a banking institution, which is

expected to exercise more care and prudence in its dealings involving registered land,
ascertained the status and condition of the property being offered to it as a security for the
loan before it approved the loan. Hence, we therefore find that there is no reversible error
committed by the Court of Appeals in finding that PNB could not be considered a mortgagee in
good faith.

Stay order

A stay of execution is a court order to temporarily suspend the execution of a court judgment or other
court order. The word "execution" does not necessarily mean the death penalty; it refers to the imposition
of whatever judgment is being stayed.

(q) include s Stay or Suspension Order which shall:

(1) suspend all actions or proceedings, in court or otherwise, for the enforcement of claims
against the debtor;
 (2) suspend all actions to enforce any judgment, attachment or other provisional remedies
against the debtor;

(3) prohibit the debtor from selling, encumbering, transferring or disposing in any manner any
of its properties except in the ordinary course of business; and

(4) prohibit the debtor from making any payment of its liabilities outstanding as of the
commencement date except as may be provided herein.

Section 118. Qualifications of the Liquidator. - The liquidator shall have the qualifications
enumerated in Section 29 hereof. He may be removed at any time by the court for cause,
either motu propio or upon motion of any creditor entitled to vote for the election of the liquidator.

Section 29.Qualifications of a Rehabilitation Receiver. - The rehabilitation receiver shall have the
following minimum qualifications:

(a)A citizen of the Philippines or a resident of the Philippines in the six (6) months
immediately preceding his nomination;

(b)Of good moral character and with acknowledged integrity, impartiality and independence;

(c)Has the requisite knowledge of insolvency and other relevant commercial laws, rules and
procedures, as well as the relevant training and/or experience that may be necessary to
enable him to properly discharge the duties and obligations of a rehabilitation receiver; and

(d)Has no conflict of interest: Provided, That such conflict of interest may be waived,
expressly or impliedly, by a party who may be prejudiced thereby.

Dragnet clause is a clause in a mortgage deed stating that a mortgage secures all the debts
that the mortgagor may at any time owe to the mortgagee. It is also known as
Anaconda clause or Mother Hubbardclause

Liquidator shall refer to the natural person or juridical entity appointed as such by the court and
entrusted with such powers and duties as set forth in this Act: Provided, That, if the liquidator is a
juridical entity, it must designated a natural person who possesses all the qualifications and none of
the disqualifications as its representative, it being understood that the juridical entity and the
representative are solidarity liable for all obligations and responsibilities of the liquidator.