Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
Perfection of Security Interest.
SEC. 11. Perfection of Security Interest. - (a) A security interest shall be perfected when it has been created and the secured creditor has taken one of the actions in accordance with Section 12. (b) On perfection, a security interest becomes effective against third parties.
Means of Perfection.
SEC. 12. Means of Perfection. - A security interest may be perfected by: (a) Registration of a notice with the Registry; (b) Possession of the collateral by the secured creditor; and (c) Control of investment property and deposit account. A security interest in any tangible asset may be perfected by registration or possession. A security interest in investment property and deposit account may be perfected by registration or control.
Perfection by Control.
SEC. 13. Perfection by Control. - (a) A security interest in a deposit account or investment property may be perfected by control through: (1) The creation of the security interest in favor of the deposit-taking institution or the intermediary: (2) The conclusion of a control agreement; or (3) For an investment property that is an electronic security not held with an intermediary, the notation of the security interest in the books maintained by or on behalf of the issuer for the purpose of recording the name of the holder of the securities. (b) Nothing in this Act shall require a deposit-taking institution or an intermediary to enter into a control agreement, even if the grantor so requests. A deposit-taking institution or an intermediary that has entered into such an agreement shall not be required to confirm the existence of the agreement to another person unless requested to do so by the grantor.
Perfection in Proceeds.
SEC. 14. Perfection in Proceeds. - (a) Upon disposition of collateral, a security interest shall extend to proceeds of the collateral without further act and be continuously perfected, if the proceeds are in the form of money,accounts receivable, negotiable instruments or deposit accounts. (b) Upon disposition of the collateral, if the proceeds are in a form different from money, accounts receivable, negotiable instruments or deposit accounts, the security Interest in such proceeds must be perfected by one of the means applicable to the relevant type of collateral within fifteen (15) days after the grantor receives such proceeds; otherwise, the security interest in such proceeds shall not be effective against third parties.
Change in Means of Perfection.
SEC. 15. Change in Means of Perfection. - A security interest shall remain perfected despite a change in the means for achieving perfection: Provided, That there was no time when the security interest was not perfected.
Assignment of Security Interest.
SEC. 16. Assignment of Security Interest. - If a secured creditor assigns a perfected security interest, an amendment notice may be registered to reflect the assignment.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).