PERSONAL PROPERTY SECURITY ACT [RA NO.
11057]
An act strengthening the secured transactions legal framework in the Philippines, which shall provide for the creation, perfection, determination
of priority, establishment of a centralized notice registry, and enforcement of security interests in personal property, and for other purposes
A. Introduction to PPSA
Scope of the Act {Sec 4}
a. This Act shall apply to all transactions of any form that secure an obligation with movable collateral [inc. commodities]
b. Except interests in:
- Aircrafts subject to RA No. 9497, or the "Civil Aviation Authority Act of 2008," and
- Ships subject to PD No. 1521, or the "Ship Mortgage Decree of 1978."
Status of the Law
PPSA took effect on September 7, 2018; but its full implementation is conditioned upon the Registry being
established and operational. Thus, unless and until the LRA declares that the Registry is already operational, the
PPSA’s implementation is held in abeyance.
Implementing rules and regulations (PPSA Rules) – published on November 18, 2019; became effective on
December 3, 2019 PPSA Rules directed the Land Registration Authority to establish the registry within six
months from the publication of the PPSA Rules.
PPSR was made available for public use on March 25, 2021, which can be accessed through
www.philppsr.lra.gov.ph or PPSR/https://ppsr.lra.gov.ph.
Law Repealed, Amended, or Modified by PPSA
LAW CHANGES
Sections 1 – 16 of Act No. 1508, otherwise known as “The Chattel All are repealed.
Mortgage Law”
Articles 2085-2092 of the Civil Code of the Philippines Repealed, insofar as movable property is concerned.
Hence, Art. 2085-2092 shall only apply to real
mortgage.
Repealed, insofar as movable property is concerned.
Hence, Art. 2085-2092 shall only apply to real
mortgage.
Repealed, insofar as movable property is concerned.
Hence, Art. 2085-2092 shall only apply to real
mortgage.
Repealed, insofar as movable property is concerned. Hence, Art 2085-2092
shall only apply to real mortgage.
Articles 2093-2123 (Chapter on Pledge) and 2140-2141 of the Civil Code All are repealed.
of the Philippines
Section 13 of RA 5980 Financing Company Act of 1998 PPSA includes registry of financial leases; intention of
the law is to consolidate registrations of all security
agreement
PPSA includes registry of financial leases; intention of the law is to
consolidate registrations of all security agreement
Sections 114 - 116 of PD 1529 Property Registration Decree (Registration All are repealed.
of Chattel Mortgage)
Section 5(e) of RA 4136 Land Transportation and Traffic Code PPSA to consolidate registrations of all security agreements
Section 10 of PD 1529 (Function of RD) Amended to include functions under PPSA.
Article 2127 of the Civil Code of The Philippines Repealed.
Article 2241, 2243, and 2246-2247 of the Civil Code of All are amended.
the Philippines – (provisions on special preferred
credits on movable property)
Article 2241, 2243, and 2246-2247 of the Civil Code of the Philippines –
(provisions on special preferred credits on movable property)
Information from PPSR/https://ppsr.lra.gov.ph
- The PPSR is an online notice registry that allows individuals and juridical entities to create, perfect, and register security
interests over personal property.
1. Register Notice - Registering on the PPSR means creating an official record that indicates a creditor’s claim over
personal property as collateral for a loan or obligation. This record helps protect the creditor’s interest in the
property.
2. Search Notice - Searching the PPSR allows individuals or businesses to check if there are any existing claims or
security interests registered against personal property. This is important for potential buyers or lenders to ensure the
property is free from other claims.
3. Amend Notice - Amending a registration involves updating or modifying the details of an existing record. This
could include changes to the creditor’s information, the description of the collateral, or the terms of the security
interest.
4. Terminate Notice - Terminating a registration on the PPSR means removing the record from the registry. This
typically happens when the secured obligation has been fulfilled, and the creditor no longer has a claim over the
property.
5. Certify Notice - Certifying involves obtaining an official document that confirms the details of a registration or
search result. This certified document can be used for legal or official purposes.
6. Auction - An auction notice is a public announcement that personal property, which is subject to a security interest,
will be sold at auction. This usually occurs when the debtor defaults on their obligation, and the creditor exercises
their right to sell the collateral to recover the debt.
PPSR provides for videos on:
1. How to create an individual account.
2. How to create a juridical account.
3. How to register notice.
4. How to certify notice.
