Published — April 18, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: ORGANIZATIONAL SECURITY MEASURES FOR THE PROTECTION OF PERSONAL DATA
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Personal Property Security Act (PPSA) was signed into law on 17 August 2018.
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The law aims to promote economic activity by increasing access to least cost credit, particularly for micro, small, and medium enterprises (MSMEs), by establishing a unified and modern legal framework for securing obligations with personal property.
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The law shall apply to all transactions of any forms that secure an obligation with personal property, whether it is tangible or intangible asset.
Republic Act (RA) No. 11057, otherwise known as the “Personal Property Security Act (PPSA),” was signed into law on 17 August 2018. The law aims to promote economic activity by increasing access to least cost credit, particularly for micro, small, and medium enterprises (MSMEs), by establishing a unified and modern legal framework for securing obligations with personal property.
Under the Implementing Rules and Regulations:
The rule shall apply to all transactions of any forms that secure an obligation with personal property, whether it is tangible or intangible asset, except interests in aircraft subject to Republic Act No. 9497 or Civil Aviation Authority Act of 2008, and interests in ships subject to Presidential Decree No. 1521 or the Ship Mortgage Decree of 1978.
Contracting parties are free to enter into any forms of security arrangements over movable property, as long as the security arrangement covering the same is not inconsistent with the PPSA or these Rules. Subject to existing law, parties may also apply to these Rules to other functional equivalents of security interest, including fiduciary transfer of title, financial lease; assignment or transfer of receivables; and sale with retention of title.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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