Captain Monastario devises a scheme to legally take over the mission, and thereby starve Nacho Torres out of sanctuary. Don Diego convinces about a legendary spectral monk haunts the mission's grounds to Sergeant Garcia who unwittingly reports it to other soldiers. They get frightened away by the specter (Zorro in disguise) later that night.
- Capitan Monastario reprimands Sgt Garcia for being incompetent and inept because he has failed to capture Don Nacho Torres and Zorro. Garcia insists he has looked everywhere, but cannot find Torres or Zorro. A peon informs Monastario that Torres is hiding at the mission in order to claim the reward of 500 pesos. Monastario tries to arrest Torres, but Padre Filipe insists that he observe the law of sanctuary for 40 days. Monastario retaliates by enslaving the Indians who live at the mission. Torres feels guilty and tries to surrender, but Don Diego and Bernardo arrive in time to stop him. Monastario informs Diego that he will increase the cruel treatment of the Indians until Torres surrenders. Monastario enters the sanctuary to ask Torres to surrender, but Diego asks him to wait until after Torres finishes praying. Diego distracts Monastario by playing loud organ music, which buys time for some of the Indians to escape. Monastario increases the abuse toward the Indians, so Torres surrenders. Zorro arrives to rescue the Indians and drive off the soldiers. Torres then returns to the sanctuary.