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FOURTEENTH CONGRESS OF THE REPUBLIC) 
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{)C'f 16 :i 
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OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Abandoned and derelict motor vehicles are nuisances. They obstruct the free flow of 
traffic on the street on which they lay abandoned. They prevent the free ingress and egress of real 
property owners when they are left unattended in front of driveways and gates. They prevent the 
free use of real property when they are dumped and abandoned on the same. They are a source of 
lost income to automobile repair, towing and storage facilities when their owners abscond. 
This bill seeks to protect the public from the potential harm that may befall them as a 
result of abandoned and derelict motor vehicles.* 
* This bill was originally filed during the Thirteenth Congress, Second Regular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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U c r i G  ? y $ ~ i - ’  
First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
GOVERNING ABANDONED AND DERELICT MOTOR VEHICLES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Short Title. - This Act shall be known as the “Abandoned Motor Vehicle 
Act of 2007.” 
SECTION 2. Declaration of Policy. - It is the policy of the State to promote the general 
welfare of the people. Pursuant to this policy, this Act seeks to create a law governing abandoned 
motor vehicles and derelict motor vehicles. 
SECTION 3. Definition of Terms. -For purposes of this Act: 
(A) “Abandoned motor vehicle” means a motor vehicle or trailer and its contents: 
(1) Which has been left by the owner or some person acting for the owner with an 
automobile dealer, or any automobile repair facility for repair or for some 
other reason and has not been called for by such owner or other person within 
a period of thirty (30) days after the time agreed upon; or within 30 days after 
such vehicle i s  turned over to such dealer, or automobile repair facility when 
no time is agreed upon; or within thirty (30) days after the completion of 
necessary repairs; 
(2) Has been left by the owner or some person acting for the owner with a towing 
and storage facility for a period of not less than thirty (30) days without 
anyone having paid all reasonable current charges for such towing and 
storage; 
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(3) Which has been lawfully towed to an automotive storage facility at the request 
of a law enforcement officer and left there for a period of not less than 30 days 
without anyone having paid all reasonable current charges for such towing 
and storage; 
(4) Which has been lawfully towed from private property to an automotive 
storage facility at the request of a property owner or person acting for the 
property owner and left there for a period of not less than thirty (30) days 
without anyone having paid all reasonable current charges for such towing 
and storage; 
(5) Which was being stored by agreement for an insurance company providing 
insurance to cover damages to the vehicle and was left for a period of not less 
than thirty (30) days past the agreed upon date. 
(B) “Derelict motor vehicle” means any motor vehicle which has been left unattended on 
private property for not less than two (2) days or on public property for not less than 
three (3) days without the owner or driver making any attempt to recover such vehicle 
or to leave a conspicuously placed note that such owner or driver intends to return for 
such vehicle. It shall also include any motor vehicle which, if a conspicuous note was 
left, has been left unattended for not less than five (5) days and if because of damage, 
vandalism, theft, or fire the vehicle is damaged to the extent that its restoration to an 
operable condition would require the replacement of one or more major component 
parts or involves any structural damage that would affect the safety of the vehicle. 
The term shall not include a vehicle which does not bear a manufacturer’s vehicle 
identification number plate or a vehicle identification number plate assigned by the 
Land Transportation Office. 
(C) “Motor vehicle” or “vehicle” means a motor vehicle or trailer and its contents. 
(D) “Owner” or “owners” means the registered owner, the owner as recorded on the title, 
lessor, lessee, security interest holders, and all lienholders as shown on the records of 
the Land Transportation Office; 
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health or safety. 
(E) “Unattended vehicle check” shall consist of such 
to determine that the unattended vehicle does no: 
person and to determine that the unattended vehxle 
SECTION 4. Duty of Peace Officer to Perform an 
Vehicle Check. - It shall 
has been left unattended 
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be the duty of any peace officer who discovers a motor 
actions as are reasonably necessary 
contain an injured or incapacitated 
does not pose a threat to public 
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on a public street, road, or highway or other public pr perty to immediately perform an 
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unattended vehicle check on such motor vehicle, unless ther i 
is displayed on such motor vehicle 
such peace officer reasonably believes that the person who 
does not intend to return and remove such motor vehicle. 
Any law enforcement officer who finds a motor 
on the state highway system shall be authorized to cause 
immediately to a garage or other place of safety when such 
health or safety or to mitigate congestion. Any peace officer 
has been left unattended on a public street, road, or highwaq. 
the state highway system, shall be authorized immediately 
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an unattended vehicle check card indicating that another eace officer has already performed 
such an unattended vehicle check. 
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left such motor vehicle unattended 
vekicle which has been left unattended 
such motor vehicle to be removed 
ciotor vehicle poses a threat to public 
who finds a motor vehicle which 
or other public property, other than 
to cause such motor vehicle to be 
SECTION 5. Removal of an Abandoned Motor Vehi le by a Peace or Law Enforcement 
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Officer. - Any peace officer who finds a motor vehicle w ich has been left unattended on a 
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public street, road, or highway or other public property for period of at least five (5) days shall 
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be authorized to cause such motor vehicle to be removed to i 
a garage or other place of safety, if 
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SECTION 6. Possessory Lien. - Any person who or 
or stores any motor vehicle shall have a possessory lien on 
effect while the motor vehicle is in the possession of the 
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facility that legally tows, transports, 
the vehicle. The lien shall remain in 
person or facility and is limited to 
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removed immediately to a garage or other place of safety w en such motor vehicle poses a threat 
to public health or safety or to mitigate congestion. 
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reasonable towing and storage fees, plus notification, advertisement, or disposal costs where 
applicable. Such lien shall include vehicle contents with the following exceptions: prescription 
drugs or eyewear, child passenger restraining system, house keys, and personal documentation 
such as birth or death records. This lien attaches when the person or facility acts: 
(A) Under a contract with the owner or someone representing the owner; 
(B) At the direction of a law enforcement officer; or 
(C) At the direction of an owner or lessor, or a person authorized by the owner or lessor, 
of private property on which such vehicle is wrongfully located, and the vehicle was 
removed in accordance with Section 5. 
SECTION 7. Duty of Person or Facility which Stores the Abandoned Motor Vehicle. - 
Any person or facility who stores a motor vehicle that was removed from public or private 
property at the request of someone other than the vehicle owner or some person acting for the 
owner shall notify in writing a local law enforcement agency of the location of the vehicle, the 
manufacturer’s vehicle identification number, license number, model, year, and make of the 
vehicle within three business days of the removal of such vehicle and shall seek from the local 
law enforcement agency the identity and address of all known owners of such vehicle, and any 
information indicating that such vehicle is a stolen motor vehicle. The local law enforcement 
agency shall furnish such information to the person or facility storing such vehicle within three 
business days after receipt of such request. 
When any motor vehicle is removed under conditions set forth in Section 5 of this Act, 
the person or facility storing such motor vehicle shall, within seven (7) business days of the day 
such motor vehicle was removed or one business day after the information is furnished to the 
storer pursuant to Paragraph 1 of this Section, whichever is later, notify all owners, if known, by 
written acknowledgment signed thereby or by certified or registered mail or statutory overnight 
delivery, of the location of such motor vehicle, the fees connected with removal and storage of 
such motor vehicle, and the fact that such motor vehicle will be deemed abandoned under this 
chapter unless the owner, security interest holder, or lienholder redeems such motor vehicle 
within 30 days of the day such vehicle was removed. Further, such notification shall not be 
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required if the vehicle is being repaired by a repair facility or being stored at the request of the 
vehicle owner or someone acting for the owner or an insurance company that is providing 
insurance to cover damages to the vehicle. No such notice or written demand shall be required if, 
after a good faith effort, the identity of the owner cannot be ascertained. 
If none of the owners redeems such motor vehicle as described in Paragraph 2 of this 
Section, or if a vehicle being repaired by a repair facility or being stored at the request of the 
vehicle owner or someone acting for the owner or by an insurance company that is providing 
insurance to cover damages to the vehicle becomes abandoned, the person or facility storing such 
motor vehicle shall, within seven business days of the day such vehicle became an abandoned 
motor vehicle, give notice in writing, by sworn statement, on the form prescribed by the 
Chairman of the Land Transportation Office, stating the manufacturer’s vehicle identification 
number, the license number, the fact that such vehicle is an abandoned motor vehicle, the model, 
year, and make of the vehicle, the date the vehicle became an abandoned motor vehicle, the date 
the vehicle was removed, and the present location of such vehicle and requesting the name and 
address of all owners of such vehicle. If the form submitted is rejected because of inaccurate or 
missing information, the person or facility storing the vehicle shall resubmit, within seven 
business days of the date of the rejection, a corrected notice form. 
If the identity of the owners of such motor vehicle cannot be ascertained, the person or 
facility storing such vehicle shall place an advertisement in a newspaper of general circulation in 
the county where such vehicle was obtained or, if there is no newspaper in such county, shall 
post such advertisement at the county courthouse in such place where other public notices are 
posted. Such advertisement shall run in the newspaper once a week for two consecutive weeks or 
shall remain posted at the courthouse for two consecutive weeks. The advertisement shall contain 
a complete description of the motor vehicle, its license and manufacturer’s vehicle identification 
numbers, the location from where such vehicle was initially removed, the present location of 
such vehicle, and the fact that such vehicle is deemed abandoned and shall be disposed of if not 
redeemed. 
Any person or facility storing a vehicle under the provisions of this Section shall notify 
the Land Transportation Office if the vehicle is recovered, is claimed by the owner, is 
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determined to be stolen, or for any reason is no longer an abandoned motor vehicle. Such notice 
shall be provided within seven (7) business days of such event. 
SECTION 8. Duty of Law Enforcement Oficer $Abandoned Motor Vehicle is found to 
be Stolen. - If any motor vehicle removed under conditions set forth in Section 7 of this Act is 
determined to be a stolen motor vehicle, the local law enforcement officer or agency shall 
immediately notify the storage facility of such determination, and provide to such storage facility 
the nanies and addresses of all owners, if ascertainable, and shall further notify the Georgia 
Crime Information Center of the location of such motor vehicle within three (3) days after 
receiving notice that such motor vehicle is a stolen vehicle. 
SECTION 9. Procedure for Foreclosure of Liens. - All liens acquired under shall be 
foreclosed as follows: 
(A) Any proceeding to foreclose a lien on an abandoned motor vehicle must be instituted 
within one year from the time the lien is recorded or is asserted by retention; 
(B) The person desiring to foreclose a lien on an abandoned motor vehicle shall, by 
certified or registered mail or statutory overnight delivery, make a demand upon the 
owners for the payment of the reasonable fees for removal and storage plus the costs 
of any notification or advertisement. Such written demand shall include an itemized 
statement of all charges and may be made concurrent with the notice required by 
Section 7, Paragraph 2 of this Act. Such demand shall be made on a form prescribed 
by rule or regulation of the Department of Transportation and Communication and 
shall notify the owner of his or her right to a hearing to determine the validity of the 
lien. The demand shall further state that failure to return the written demand to the 
lien claimant, file with a court of competent jurisdiction a petition for a judicial 
hearing, and provide the lien claimant with a copy of such petition, all within ten (10) 
days of delivery of the lien claimant’s written demand, shall effect a waiver of the 
owner’s right to such a hearing prior to sale. The form shall also provide the 
suspected owner with the option of disclaiming any ownership of the vehicle, and his 
or her affidavit to that effect shall control over anything contrary in the records o f  the 
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Land Transportation Office. No such written demand shall be required if the identity 
of the owner cannot be ascertained and the notice requirements of Section 7, 
Paragraph 4 have been complied with. 
(C) If, within ten days of delivery to the appropriate address of the written demand 
required by Paragraph (B) of this Section, the owner of the abandoned motor vehicle 
fails to pay or file with the court a petition for a judicial hearing with a copy to the 
lien claimant in accordance with the notice provided pursuant to Paragraph (B), or if 
the owner of the abandoned motor vehicle cannot be ascertained, the person or 
facility storing the abandoned motor vehicle may foreclose such lien. The person or 
facility asserting such lien may move to foreclose by making an affidavit to a court of 
competent jurisdiction, on a form prescribed by rule or regulation of the Land 
Transportation Office, showing all facts necessary to constitute such lien and the 
amount claimed to be due. The person or facility foreclosing shall verify the 
statement by oath or affirmation and shall affix his or her signature thereto. 
(D) If no timely petition for a hearing has been filed with a court of competent 
jurisdiction, then, upon such affidavits being filed by the lien claimant pursuant to 
Paragraph (C) of this Section, the lien will conclusively be deemed a valid one and 
foreclosure thereof allowed; 
(E) If a petition for a hearing is filed with a court of competent jurisdiction within ten 
days after delivery of the lien claimant’s demand, a copy of which demand shall be 
attached to the petition, the court shall set such a hearing within ten (10) days of filing 
of the petition; 
(F) Upon the filing of such petition by an owner, neither the lien claimant nor the court 
may sell the motor vehicle, although possession of the motor vehicle may be retained 
by the lien claimant or obtained by the court in accordance with the order of the court 
which sets the date for the hearing; 
(G) If, after a full hearing, the court finds that a valid debt exists, then the court shall 
authorize foreclosure upon and sale of the motor vehicle subject to the lien to satisfy 
the debt if such debt is not otherwise immediately paid; 
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(H) If the court finds the actions of the person or facility asserting the lien in retaining 
possession of the motor vehicle were not taken in good faith, then the court, in its 
discretion, may award damages to the owner, any party which has been deprived of 
the rightful use of the vehicle, or the lessee due to the deprivation of the use of the 
motor vehicle; 
(I) If an affidavit meeting the requirements of Paragraph (C) of this Code section is filed 
and no petition for a hearing is timely filed, or if, after a full hearing, the court 
determines that a valid debt exists, the court shall issue an order authorizing the sale 
of such motor vehicle. However, the holder of a security interest in or a lien on the 
vehicle, other than the holder of a lien created by Section 6 of this Act, shall have the 
right, in the order of priority of such security interest or lien, to pay the debt and court 
costs. If the holder of a security interest or lien does so pay the debt and court costs, 
he or she shall have the right to possession of the vehicle, and his or her security 
interest in or lien on such vehicle shall be increased by the amount so paid. A court 
order shall be issued to this effect, and in this instance there shall not be a sale of the 
vehicle; 
(J) The purchaser at a sale as authorized in this article shall receive a certified copy of the 
court order authorizing such sale. Any such purchaser may obtain a certificate of title 
to such motor vehicle by filing the required application, paying the required fees, and 
filing a certified copy of the order of the court with the Land Transportation Office. 
The Land Transportation Office shall then issue a certificate of title, which shall be 
free and clear of all liens and encumbrances. 
SECTION 10. Procedure for Derelict Motor Vehicles. - Derelict motor Vehicles shall be 
dealt with as follows: 
(A)If a motor vehicle has been left unattended on private property for not less than 
(2) two days or on public property for not less than three (3) days without the 
owner or driver making any attempt to recover such vehicle or to leave a 
conspicuously placed note that such owner or driver intends to return for such 
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vehicle; or, if a conspicuous note was left, if the motor vehicle has been left 
unattended for not less than five (5) days and if because of damage, vandalism, 
theft, or fire the vehicle is damaged to the extent that its restoration to an operable 
condition would require the replacement of one or more major component parts or 
involves any structural damage that would affect the safety of the vehicle; or if 
there is evidence that the vehicle was inoperable due to major mechanical 
breakdown at the time it was left on the property; or if the vehicle is seven or 
more years old; or if the vehicle is not currently tagged or is not verifiable by the 
state as to who is the current owner or lienholder of the vehicle; or if the vehicle 
has been abandoned to a wrecker service by an insurance company and the owner 
following the insurance company’s making a total loss payment, then any person 
removing such vehicle shall within three (3) business days of removing such 
vehicle obtain the identity of and address of the last known registered owner of 
the vehicle, the owner of the vehicle as recorded on the certificate of title of such 
vehicle, and any security interest holder or lienholder on such vehicle from the 
local law enforcement agency of the jurisdiction in which the vehicle was located. 
(B)If the law enforcement agency shows no information on the vehicle, then a 
request for such information shall be sent to the Land Transportation Office. 
Within three (3) business days after obtaining such information, the person 
removing such vehicle shall, by certified mail or statutory overnight delivery, 
return receipt requested, notify the registered owner, title owner, and security 
interest holder or lienholder of the vehicle that such vehicle will be declared a 
derelict vehicle and the title to such vehicle will be canceled by the Land 
Transportation Office if such person or persons fail to respond within ten days of 
receipt of such notice. 
(C)Upon determination that a vehicle is a derelict motor vehicle as provided in 
Paragraph (A) of this Section, it may be disposed of by sale to a person who 
scraps, dismantles, or demolishes motor vehicles, provided that such vehicle may 
be sold for scrap or parts only and shall in no event be rebuilt or sold to the 
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general public. Any person disposing of a derelict motor vehicle shall, prior to 
disposing of such vehicle, photograph such vehicle for a period of three years 
after its disposition. Such person shall also notify the Department of Revenue of 
the disposition of such vehicle in such manner as may be prescribed by the 
Chairman of the Land Transportation Office. It shall cancel the certificate of title 
for such vehicle and shall not issue a rebuilt or salvage title for such vehicle. 
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be penalized as follows: 
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attending circumstances. 
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(D) Any person removing a derelict motor vehicle who fails to comply with the 
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requirements of this Act or who knowingly provides false or misleading 
SECTION 11. Prohibited Act and Penalties. - The following acts are unlawful and shall 
(A) Any person or facility who fails to provide notice and information required by 
Section 7 of this Act shall be fined an amount of not more than Ten Thousand 
Pesos (Pl0,OOO.OO) at the discretion of the court, taking into consideration all 
(B) A fine of not more that Five Thousand Pesos (P5,OOO.OO) shall be imposed on 
any person or facility who knowingly provides false or misleading information 
when providing any notice or information as required by Section 7 of this Act. 
In addition, to the penalties provided in Paragraphs (A) and (B), such 
person or facility shall not be eligible to contract with or serve on a rotation list 
providing wrecker services for the State or any political subdivision thereof, and 
shall not be licensed by any municipal authority to provide removal of improperly 
parked cars for six months and until legal disposition of all abandoned vehicles in 
that person’s or facility’s possession. 
(C) Any person who abandons a derelict motor vehicle on public or private property 
shall be fined an amount of not more than Ten Thousand Pesos (P6,OOO.OO) at the 
discretion of the court, taking into consideration all attending circumstances and 
shall pay all costs of having such derelict motor vehicle removed, stored, and sold 
as provided for in Section 10. 
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amount of not more than Five Thousand Pesos (P5,OOO.OO) 
at the discretion of the 
court, taking into consideration all attending circumstances 
SECTION 12. Liability for Negligence. - Any peace officer who, under Act, causes any 
motor vehicle to be removed to an automotive storage facility shall be liable for gross negligence 
only. 
Any person or towing service that is instructed by a law enforcement officer or an official 
of the Department of Transportation to remove vehicles and cargo that pose a threat to public 
health or safety or to mitigate congestion shall be liable for gross negligence only. 
Neither the State nor any state agency nor the person removing, storing, and processing 
the vehicle unless recklessly or grossly negligent shall be liable to the owner of a vehicle 
declared to be an abandoned motor vehicle or a derelict motor vehicle. 
SECTION 13. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 14. Repeuling Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
with the provisions of this act is hereby repealed, modified or amended accordingly. 
SECTION 15. Efecedivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
Irgs 
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