Register Notice

The registration of notice for the Personal Property Security Registry (PPSR) in the Philippines is an official process where secured parties record security interests in personal property to serve as collateral for loans or obligations. This registration is governed by the Personal Property Security Act (Republic Act No. 11057), which aims to modernize and streamline the legal framework for securing obligations with movable assets.

Key Points about Registration of Notice in PPSR:
  1. Purpose:
    • Registration serves as public notice of a security interest, determining the order of claims among secured creditors, buyers, and other third parties.
  2. Parties Involved:
    • Secured Party: The creditor or lender possessing a security interest in the asset.
    • Grantor: The debtor or borrower offering  the personal property as security / collateral.
  3. Process of Registration:
    • Filing an Online Notice: Registrations are generally finalized electronically via the PPSR’s online system, operated and maintained by the Land Registration Authority (LRA).
    • Information Required: Information concerning the secured party, grantor, a description of the collateral, and the type of security interest.
    • Payment of Notice: Payment will be carried out through the Linkbiz payment portal. A distinct payment number is given after the payment is successfully made.
    • Confirmation of Registration: A unique registration number is provided, serving as proof of the submitted notice.
  4. Duration of Registration:
    • The security interest stays effective for the duration outlined in the registration, contingent upon renewal or release upon fulfilling the obligation.
  5. Benefits:
    • Enhances transparency and efficiency in securing movable property.
    • Reduces transaction costs and enhances access to credit, particularly for small and medium-sized enterprises (SMEs).
  6. Types of Notices:
    • Initial Registration: The first filing of a security interest.
    • Amendment: Adjusting the details or conditions of a current registration.
    • Continuation: Prolonging the registration period.
    • Termination (Discharge): Indicating that the secured obligation has been fulfilled/satisfied.

The PPSR advocates for a unified system for personal property security interests, reducing disputes and enhancing the business climate in the Philippines.