Deed of Usufruct Over a Motor Vehicle

(DEED OF USUFRUCT OVER A MOTOR VEHICLE) DEED OF GRANT OF USUFRUCTUARY RIGHTS KNOW ALL MEN BY THESE PRESENTS: This Deed of Grant of Usufructuary Rights entered into by and between: _____________, of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, (hereinafter referred to as the " GRANTOR"); - and _____________, of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, (hereinafter referred to as the " GRANTEE"); W I T N E S S E T H: WHEREAS, the GRANTOR is the true and registered owner of a certain motor vehicle, more particularly described as follows: Make: Series: Type of Body: CR No.:

_____________Motor No.: _____________Chassis No.: _____________Plate No.: _____________MVRR No.:

_____________ _____________ _____________ _____________

WHEREAS, the GRANTOR desires to give the GRANTEE the right of usufruct over the aforedescribed motor vehicle with the latter having the full right to the possession, use and enjoyment of the said motor vehicle in return for it assuming the obligation to shoulder the yearly registration fees, insurance, and other charges over the said motor vehicle, as well as the obligation to make the necessary maintenance and repairs to preserve the vehicle during the lifetime of the usufruct. NOW THEREFORE, for and in consideration of the mutual agreements, covenants and stipulations hereinafter set forth, the GRANTOR hereby transfers and conveys unto the GRANTEE by way of USUFRUCT the aforedescribed motor vehicle, subject to the following terms and conditions: 1. This grant of Usufruct shall be valid and binding during the entire lifetime of the GRANTEE subject to the condition that (he/she) shall actually retain possession and control of the motor vehicle covered by the grant; 2. The GRANTEE shall pay and be liable for all registration fees, insurance, taxes, licenses, permits, duties, levies and such other charges as the Government or any of its instrumentalities and agencies may impose by reason of the use and operation of the motor vehicle and/or arising out of this agreement and its implementation; 3. The GRANTEE may make improvements on the motor vehicle subject of this grant and may make any addition, alteration or improvements on the vehicle without the prior approval of the GRANTOR provided such additions, alterations or improvements is necessary in the safe and proper operation of the vehicle or is desirable in order to maximize the use for which it was intended; 4. The GRANTEE shall, at (his/her) own expense, make all necessary maintenance and repairs to keep the motor vehicle in good running condition and to prevent it and all its accessories from deteriorating in value or condition during the term of the grant,

ordinary wear and tear excluded; 5. Only the GRANTEE or his duly-authorized agents or employees may operate the motor vehicle and they shall have complete and unimpeded possession and use of the afore-said vehicle during the lifetime of this grant; 6. The GRANTEE shall not lease the motor vehicle without the express consent of the GRANTOR; 7. The GRANTOR hereby covenants with the GRANTEE that the latter shall peaceably hold and enjoy the full use and possession of the motor vehicle afore-described during the period of the grant; 8. During the effectivity of this usufruct or during the entire time that the GRANTEE has material possession and/or control of the vehicle, the GRANTEE shall assume any and all claims or liabilities in connection with any injury or wrongful death inflicted on any person or for any damage to property caused by or arising out of the operation or use of the motor vehicle, holding the GRANTOR free and harmless from any liability thereby. Should a claim be filed against the GRANTOR, the GRANTEE undertakes that (he/she) shall immediately intervene and assume all liabilities or claims in behalf of the GRANTOR in the event that the claimant is justly entitled to his claim; 9. The GRANTOR may immediately recover possession the afore-mentioned motor vehicle and terminate the usufruct should the GRANTEE violate any of the provisions of the Grant or fail to comply with its obligations as a usufructuary as provided under the New Civil Code of the Philippines, the applicable provisions of which are incorporated herein and deemed part of the provisions of this Deed; 10. Both parties acknowledge that this agreement is entered into in good faith and shall require the faithful compliance of the respective obligations of the parties concerned and respect of each other's rights as contained in this Deed. Any party who shall, by its action or omission, directly or indirectly be responsible for the nonimplementation of any provision of this agreement shall be liable for actual, moral and exemplary damages. IN WITNESS WHEREOF, we have hereunto set our hands this _____________ at _____________, Philippines.

GRANTOR

GRANTEE

SIGNED IN THE PRESENCE OF:

__________________ __________________

(ACKNOWLEDGMENT)