MANILA, Philippines — The Department of Finance (DOF) has released the draft implementing rules and regulations (IRR) for the Personal Property Security Act, a law which is seen to make credit more accessible to micro, small and medium enterprises (MSMEs), farmers and fishers.
According to the DOF, the draft IRR was prepared by the agency’s Legal Service Group in consultation with experts, practitioners and professors in commercial laws and credit transactions of the University of the Philippines (UP) Law Center.
It was posted on the DOF’s website, ahead of the public consultation which will be conducted tomorrow at the UP Law Center in Diliman, Quezon City.
The DOF said stakeholders and interested parties may also submit their comments and suggestions by accessing the agency’s website, or by sending an email to the DOF-Legal Services Group at ppsairr@dof.gov.ph.
Republic Act 11057 or the PPSA was signed into law by President Duterte in August last year.
It aims to increase access to credit, particularly for MSMEs, farmers and fisherfolk by establishing a unified and modern legal framework for securing obligations with personal property.
Under the law, these sectors are allowed to secure loans from banks using non-traditional collateral, such as account receivables, inventory, negotiable instruments, electronic securities, crops, livestock, consumer goods, machinery, equipment as well as intellectual property rights.
It likewise allows the borrowers to secure loans through the creation of a security interest in future property or after-acquired assets, so long as the security interest in that property is created only with the grantor acquires rights in it or the power to encumber it.
According to the DOF, PPSA also establishes a centralized notice Registry, which seeks to provide electronic means for registration and searching of notices.