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Outline 4 - Ppsa

This document outlines the key aspects of the Personal Property Security Act (RA 11057) covered in its sections. It discusses definitions of terms like security interest and secured creditor. It explains that the Act repeals prior laws on pledges and chattel mortgages. The Act establishes rules for creating, perfecting through registration or possession, assigning, enforcing and extinguishing security interests in personal property to secure obligations. It also addresses priority of security interests and permitted means of enforcing security interests after default, including expedited repossession of collateral.

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Marf Crystal Hyacinth Balonglong
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46 views3 pages

Outline 4 - Ppsa

This document outlines the key aspects of the Personal Property Security Act (RA 11057) covered in its sections. It discusses definitions of terms like security interest and secured creditor. It explains that the Act repeals prior laws on pledges and chattel mortgages. The Act establishes rules for creating, perfecting through registration or possession, assigning, enforcing and extinguishing security interests in personal property to secure obligations. It also addresses priority of security interests and permitted means of enforcing security interests after default, including expedited repossession of collateral.

Uploaded by

Marf Crystal Hyacinth Balonglong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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OUTLINE – PERSONAL ROPERTY SECURITY ACT (RA 11057)

1. Objective / Purpose --- Sec.2

2. Laws repealed/ amended/ modified – Sec. 6


- Most sweeping effect is repeal of laws on conventional pledges and
chattel mortgages

3. Scope – Sec. 4

4. Definitions: Security interest (SI) - Sec. 3(j)


Grantor – Sec. 3(c)
Secured creditor - Sec. 3(i)

5. Continuity and Extent of SI – Sec. 9, 8, 3(f)

6. Creation of SI – Sec. 5

7. Nature of a Security Agreement (SA):


- consensual contract
- accessory obligation
- Real security

8. Object of SI
- Personal property / movables – Sec. 4
- Art. 416, 417 of NCC
- movables under the PPSA
Mla Bank v. Teodoro (GR 53955; 1/13/1989)
Yau Chua v. CA (GR L-78519; 9/26/1989)
- Future property – Sec. 5(b)

9. Form – Sec. 6; Sec. 3(k); Sec.7

10. Perfection of SI – Sec. 11(a)

11. Effect of Perfection – Sec. 11(b)

12. Means of Perfection – Sec. 12


a) By Registration – Sec. 12
b) By Possession – Sec. 12
c) By Control – Sec. 12; 13; Sec. 3(b)

13. Disposition of Perfected SI


Effects: a) Continuity of SI – Sec. 9
Except if parties agree otherwise;
or transferee in GF – Sec. 21
b) Perfection in proceeds – Sec. 14; Sec. 3(f)

14. Assignment of SI – Sec. 16

15. Priority of SI – a) Sec. 17 (perfection of SI vs creation of SI)


b) priority w/in each means of perfection

16. Enforcement of SI After Default


a) Expedited repossession – prelim process
a.1) No judicial process - Sec. 47 (a), (b)
a.2) With jud’l process - Sec. 47 (c); Sec. 63
b) Enforcement Proper
b.1) Higher-ranking secured CR – Sec. 46
b.2) Methods of enforcement:
1. Recovery of Collateral – Sec. 48
- no judicial process
Citibank v. Sabeniano (GR 156132; 10/12/2006)
2. Disposition of collateral – Sec. 49; 50
- publicly or privately
- requirement of comm’l reasonableness
- right of redemption – Sec. 45
Note: Typo error Sec. 45(b)(1) – remove “not”
3. Retention of Collateral – Sec. 54

17. Extinguishment of SI – a) When ALL secured obligs have been


Discharged AND (b) there is NO outstanding commitments to extend credit
secured by the SI.

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