The public hearing to discuss the draft of the implementing rules and regulations (IRR) for Republic Act (RA) No. 11057, otherwise known as the “Personal Property Security Act (PPSA), has been moved to July 25, 2-4:30 PM, at the University of the Philippines (UP) Law Center in Diliman, Quezon City.
Originally set last July 17, the date of the public consultation was reset to Thursday (July 25) to give the stakeholders and other interested parties ample time to review and provide comments on the draft IRR for the PPSA.
The DOF has posted the draft IRR of the PPSA on its website, including the full text of the law and explanatory notes.
Interested parties may review and download the draft IRR and provide comments online. They can also register there for the upcoming public consultation at the UP Law Center on PPSA’s proposed IRR.
The microsite can be accessed at https://www.dof.gov.ph/index.php/advocacies/personal-property-security-act/.
For inquiries, comments, and suggestions on the draft IRR of the PPSA, one can send his or her email to the DOF-Legal Services Group at ppsairr@dof.gov.ph.
RA No. 11057 or the PPSA aims to promote economic activity by increasing access to least cost credit, particularly for micro, small, and medium enterprises (MSMEs) along with farmers and fisherfolk by establishing a unified and modern legal framework for securing obligations with personal property.
The PPSA’s draft IRR was prepared by the DOF Legal Services Group in consultation with experts, practitioners and professors in commercial laws and credit transactions of the UP Law Center.
Under the PPSA, MSMEs, farmers and fisherfolks can now secure their borrowings by using non-traditional collateral such as account receivables, inventory, negotiable instruments, electronic securities, crops, livestock, consumer goods, machinery, equipment as well as intellectual property rights.
The PPSA likewise provides that future property can now secure a borrower’s financial needs through the creation of a security interest in the security agreement; however, the security interest in that property is created only when the borrower acquires rights in it or the power to encumber it.
This new law has simplified the process as security interest may be perfected by registration of a notice with the Registry, possession of the collateral by the secured creditor or by control of investment property and deposit account. On perfection, a security interest becomes effective against third parties.
The centralized notice Registry established under the PPSA shall provide electronic means for registration and searching of notices. The electronic records shall be considered as public record.
There shall be no fee for electronic searches of the Registry records or for the registration of termination notices.
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