Padlock with fully integrated dual locking mechanism with a lost code defining system

A padlock operable in a locked mode and in an opened mode, comprising:

• a shackle having a heel and a toe;
• a lock housing configured to store the heel of the shackle, wherein the shackle can be partially released from the lock housing from a first shackle position to a second shackle position, the lock housing comprising a top portion, a stack of clutches forming a middle portion and a bottom portion, the middle portion having a substantially cylindrical exterior surface;
• a plurality of dials movably mounted on the cylindrical exterior surface to form a combination code;
• a spindle disposed inside the lock housing and arranged to provide a code locking mechanism, the code locking mechanism configured to keep the padlock in the locked mode based on the combination code;
• and
• an overriding mechanism disposed in relationship to the spindle, the overriding mechanism activatable to cause the padlock to operate in the opened mode, and wherein the shackle is in the first shackle position when the padlock is operated in the locked mode, and the shackle is in the second shackle position when the padlock is operated in the opened mode.