Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
Establishment of Electronic Registry.
SEC. 26. Establishment of Electronic Registry. - (a) The Registry shall be established in and administered by the LRA. (b) The Registry shall provide electronic means for registration and searching of notices,
Public Record.
SEC. 27. Public Record. - (a) Information contained in a registered notice shall be considered as a public record. (b) Any person may search notices registered in the Registry. (c) The electronic records of the Registry shall be the official records.
Sufficiency of Notice.
SEC. 28. Sufficiency of Notice. - (a) An initial notice of security interest shall not be rejected: (1) If it identifies the grantor by an. identification number, as further prescribed in the regulations; (2) If it identifies the secured creditor or an agent of the secured creditor by name; (3) If it provides an address for the grantor and secured creditor or its agent; (4) If it describes the collateral; and (5) If the prescribed fee has been tendered, or an arrangement has been made for payment of fees by other means. (b) if the Registry rejects to register a notice, it shall promptly communicate the fact of and reason for its rejection to the person who submitted the notice. (c) Each grantor must authorize the registration of an initial notice by signing a security agreement or otherwise in writing. (d) A notice may be registered before a security agreement is concluded. Once a security agreement is concluded, the date of registration of the notice shall be reckoned from the date the notice was registered. (e) A notice of lien may be registered by a lien holder without the consent of the person against whom the lien is sought to be enforced. (f) Description of the collateral in a notice shall be entered in English.
One Notice Sufficient for Security Interests Under Multiple Security Agreements.
SEC. 29. One Notice Sufficient for Security Interests Under Multiple Security Agreements. - The registration of a single notice may relate to security interests created by the grantor under one (1) or more than one security agreement.
Effectiveness of Notice.
SEC. 30. Effectiveness of Notice. - (a) A notice shall be effective at the time it is discoverable on the records of the Registry. (b) A notice shall be effective for the duration of the term indicated in the notice unless a continuation notice is registered before the term lapses. (c) A notice substantially complying with the requirements of this Chapter shall be effective unless it is seriously misleading. (d) A notice that may not be retrieved in a search of the Registry against the correct identifier of the grantor shall be ineffective with respect to that grantor.
Seriously Misleading Notice.
SEC. 31. Seriously Misleading Notice. - A notice that does not provide the identification number of the grantor shall be seriously misleading.
Amendment of Notice.
SEC. 32. Amendment of Notice. - (a) A notice may be amended by the registration of an amendment notice that: (1) Identifies the initial notice by its registration number; and (2) Provides the new information. (b) An amendment notice that adds collateral that is not proceeds must be authorized by the grantor in writing. (c) An amendment notice that adds a grantor must be authorized by the added grantor in writing. (d) An amendment notice shall be effective only as to each secured creditor who authorizes it. (e) An amendment notice that adds collateral or a grantor shall be effective &a to the added collateral or grantor from the date of its registration.
Continuation of Notice.
SEC. 33. Continuation of Notice. - (a) The period of effectiveness of a notice may be continued by registering an amendment notice that identifies the initial notice by its registration number. (b) Continuation of notice may be registered only within six (6) months before the expiration of the effective period of the notice.
Termination, of Effectiveness of a Notice.
SEC. 34. Termination, of Effectiveness of a Notice. - (a) The effectiveness of a notice may be terminated by registering a termination notice that: (1) Identifies the initial notice by its registration number; and (2) Identifies each secured creditor who authorizes the registration of the termination notice. (b) A termination notice terminates effectiveness of the notice as to each authorizing secured creditor.
Registry Duties.
SEC. 35. Registry Duties. - (a) For each registered notice, the Registry shall: (1) Assign a unique registration number: (2) Create a record that bears the number assigned to the initial notice and the date and time of registration: and (3) Maintain the record for public inspection. (b) The Registry shall index notices by the identification number of the grantor and, for notices containing a serial number of a motor vehicle., by serial number. (c) The Registry shall provide a copy of the electronic record of the notice, including the registration number and the date and time of registration to the person who submitted it. (d) The Registry shall maintain the capability to retrieve a record by the identification number of the grantor, and by serial number of a motor vehicle. (e) The Registry shall maintain records of lapsed notices for a period of ten (10) years after the lapse. (f) The duties of the Registry shall be merely administrative in nature. By registering a notice or refusing to register a notice, the Registry does not determine the sufficiency, correctness, authenticity, or validity of any information contained in the notice.
Search of Registry Records and Certified Report.
SEC. 36. Search of Registry Records and Certified Report. - (a) The Registry shall communicate the following information to any person who requests it: (1) Whether there are in the Registry any unlapsed notices that indicate the grantor's identification number or vehicle serial number that exactly matches the relevant criterion provided by the searcher; (2) The registration number, and the date and time of registration of each notice; and (3) All of the information contained in each notice. (b) If requested, the Registry shall issue a certified report of the results of a search that is an official record of the Registry and shall be admissible into evidence in. judicial proceedings without extrinsic evidence of its authenticity.
Disclosure of Information.
SEC. 37. Disclosure of Information. - (a) The secured creditor must provide to the grantor at its request: (1) The current amount of the unpaid secured obligation; and (2) A list of assets currently subject to a security interest. (b) The secured creditor may require payment of a fee for each request made by the grantor in subsection (a) in this section, but the grantor is entitled to a reply without, charge once every six (6) months. (c) A security interest in a deposit account shall not: (1) Affect the rights and obligations of the deposit-taking institution without its consent; or (2) Require the deposit-taking institution to provide any information about the deposit account to third parties.
Fees Set by Registration.
SEC. 38. Fees Set by Registration. - (a) The fees for registering a notice and for requesting a certified search report shall be set by regulation issued by the DOF for the recovery of reasonable costs of establishing and operating the Registry. (b) The fee structure or any change thereof under subsection (a) shall further consider that the same shall not be burdensome to either lender or grantor. (c) There shall be no fee for electronic searches of the Registry records or for the registration of termination notices. (d) The Registry may charge fees for services not mentioned above.
When the Grantor May Demand Amendment or Termination of Notice.
SEC. 39. When the Grantor May Demand Amendment or Termination of Notice. - A grantor may give a written demand to the secured creditor to amend or terminate the effectiveness of the notice if: (a) All the obligations under the security agreement to which the registration relates have been performed and there is no commitment to make future advances; (b) The secured creditor has agreed to release part of the collateral described in the notice; (c) The collateral described in the notice includes an item or kind of property that is not a collateral under a security agreement between the secured creditor and the grantor; (d) No security agreement exists between the parties; or (e) The security interest is extinguished in accordance with this Act.
Matters That May be Required by Demand.
SEC. 40. Matters That May be Required by Demand. - Upon receipt of the demand submitted under Section 39, the secured creditor must register, within fifteen (15) working days, an amendment or termination notice; (a) Terminating the registration in subsections (a), (d) or (e) of Section 39; (b) Amending the registration to release some property that is no longer collateral in a case within subsection (c) of Section 39 or that was never collateral under a security agreement between the secured creditor and the grantor in a case within subsection (c) of Section 39.
SEC. 41. Procedure for Non-compliance with Demand. -If the secured creditor fails to comply with the demand within fifteen (15) working days after its receipt, the person giving the demand under Section 39 may ask the proper court to issue an order terminating or amending the notice as appropriate.
Compulsory Amendment or Termination by Court Order.
SEC. 42. Compulsory Amendment or Termination by Court Order. - (a) The court may, on application by the grantor, issue an order that the notice be terminated or amended in accordance with the demand, which order shall be conclusive and binding on the LRA: Provided, That the secured creditor who disagrees with the order of the court may appeal the order. (b) The court may make any other order it deems proper for the purpose of giving effect to an order under subsection (a) of this section. (c) The LRA shall amend or terminate a notice in accordance with a court order made under subsection (a) of this section as soon as reasonably practicable after receiving the order.
No Pee for Compliance of Demand.
SEC. 43. No Pee for Compliance of Demand. - A secured creditor shall not charge any fee for compliance with a demand received under Section 39.
When Registration and Search Constitutes "^^Interference with Privacy of Individual.
SEC. 44. When Registration and Search Constitutes "^^Interference with Privacy of Individual. - A person who submitted a notice for registration or carried out a search of the Registry with a frivolous, malicious or criminal purpose or intent shall be subject to civil and criminal penalties according to the relevant laws.
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).