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RA 11057 (Personal Property Security Act) Section 10

Contractual Limitation on the Creation of a Security Interest.

Section 10

SEC. 10. Contractual Limitation on the Creation of a Security Interest. — (a) A security interest in an account receivable shall be effective notwithstanding any agreement between the grantor and the account debtor or any secured creditor limiting in any way the grantor's right to create a security interest. (b) Nothing in this section shall affect any obligation or liability of the grantor for breach of the agreement in subsection (a). (c) Any stipulation limiting the grantor's right to create a security interest shall be void. (d) This section shall apply only to accounts receivable arising from: (1) A contract for the supply or lease of goods or services other than financial services; (2) A construction contract or a contract for the sale or lease of real property; and (3) A contract for the sale, lease or license of intellectual property.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER 2 →

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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