Practice question
A third-party claimant seeks damages against the Section16 indemnity bond for taking or keeping the property. It files the action more than120days after filing of the bond, without any saving ground. The creditor argues this also extinguishes every independent title claim. Which is best?
- The120-day rule automatically destroys all ownership rights
- Every property action uses exactly the same120-day period
- Section16’s120-day requirement specifically governs enforcement of that damages claim against the bond; separate vindication of property is expressly preserved subject to its own rules
- No damages claim against any bond has a deadline
- The claimant automatically wins ownership despite delay
Legal references
- Rule39 Section16: https://lawphil.net/courts/rules/rc_1-71_civil.html
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