Personal Property Security Agreement Flashcards
Art. 2140. By a chattel mortgage, personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation. If the movable, instead of being recorded, is delivered to the creditor or a third person, the contract is […].
Art. 2140. By a chattel mortgage, personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation. If the movable, instead of being recorded, is delivered to the creditor or a third person, the contract is a pledge and not a chattel mortgage.
What is the scope of application to the PPSA?
Sec. 4. Scope of the Act. – This act shall apply to all transaction of any form that secure na obligation with movable collateral, except interests in aircrafts subject to RA 9497, or the “Civil Aviation Authority Act of 2008”, and interests in ships subject to PD No. 1521, or the “Ship Mortgage Decree of 1978.”
What is a control agreement with respect to securities?
Control agreement with respect to securities - an agreement in writing ammong the issuer or the intermediary, the grantor and the secured creditor, according to which the issuer or the intermediary agrees to follow instructions from the secured creditor with respect to the security, without further consent from the grantor. Sec. 3(b) PPSA
What is a control agreement with respect to rights to deposit account?
Control agreement with respect to rights to deposit accounts – an agreement in writing among the deposit-taking institution, the grantor and the secured creditor, according to which the deposit-taking institution agrees to follow instructions from the secured creditor with respect to the payment of funds credited to the deposit account without further consent from the grantor. Sec. 3(b) PPSA
What is control agreement with respect to commodity contracts?
Control agreement with respect to commodity contracts – an agreement in writing among the grantor, secured creditor, and intermediary, according to which the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured creditor without further consent by the commodity consumer or grantor; Sec. 3(b) PPSA
Who is a grantor?
PPSA. Sec. 3 (c). Grantor –
- The person who grants a security interest in collateral to secure its own obligation or that of another person;
- A buyer or other transferee of a collateral that acquires its right subject to a security interst;
- A transferor in an outright transfer of an accounts receivable; or
- A lessee of goods.
Who is a secured creditor?
PPSA. Sec. 3(i). Secured creditor – a person that has security interest. For the purposes of registration and priority only, it includes a buyer of account receivable and a lessor of goods under an operating lease for not less than one (1) year;
What is the concept of “continuity of security interest?”
PPSA. Sec. 9. Continuity of Security Interest. – A security interest shall continue in collateral notwithstanding sale, lease, license, exchange, or other disposition of the collateral, except as otherwise provided in Section 21 of this Act, or agreed upon by the parties.
Right to Proceeds and Commingled Funds and Money
PPSA. Sec. 8. Right to Proceeds and Comingled Funds and Monney. –
- (a) A security interest in personal property shall extend to its identifiable or traceable proceeds.
- (b) Where proceeds in the form of funds credited to a deposit account or money are commingled with other funds or money:
- (1) The security interest shall extend to the commingled money or funds, notwithstanding that the proceeds have ceased to be identifiable to the extent they remain traceable:
- (2) The security interest in the commingled funds or money shall be limited to the amount of the proceeds immediately before they were commingled: and
- (3) If at any time after the commingling, the balance credited to the deposit account or the amount of the commingled money is less than the amount of the proceeds immediately before they were commingled, the security of interest against the commingled funds or money shall be limited to the lowest amount of the commingled funds or money between the time when the proceeds were commingled and the time the security interest in the proceeds is claimed.
What is the definition of “Proceeds” under the PPSA?
PPSA. Sec. 3.(f). Proceeds. – any property received upon sale, lease or other disposition of collateral, or whatever is collected on or distributed with respect to collateral, claims arising out of the loss or damage to the collateral, as well as a right to insurance payment or other compensation for loss or damage of the collateral.
What is the effect of a mortgage?
Art. 2126. The mortgage directly an immediately subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted.
How is a security interest created?
PPSA. Sec. 5. Creation of a Security Interest. –
- (a) A security interest shall be created by a security agreement;
- (b) A security agreement may provide for the creation of a security interest in a future property, but the security interest in that property is created only when the grantor acquires rights in it or the power to encumber it.
What are personal property?
Art. 416. The following things are deemed to be personal property:
- Those movables susceptible of appropriation which are not included in the preceding article;
- Real property which by any special provision of law is considered as personalty;
- Forces of nature which are brought under control by science; and
- In general, all things which can be transported from place to place without impairment of the real property to which they are fixed.
Art. 417. The following are also considered as personal property:
- Obligations and actions which have for their object movables or demandable sums; and
- Shares of stock of agricultural, commercial and industrial entities, although they may have real estate.
