The Department of Finance (DOF) is encouraging stakeholders to review the draft implementing rules and regulations (IRR) of the Personal Property Security Act (PPSA) before July 17.
In a statement issued on Monday, the DOF said that it has already posted the draft IRR for the PPSA, or Republic Act (RA) 11057, on the department’s website. The DOF said there will be a public consultation on the draft IRR in the afternoon of July 17 at the University of the Philippines Law Center in Diliman, Quezon City.
Comments and suggestions on the draft IRR of the PPSA can be emailed to the DOF-Legal Services Group (LSG).
The draft IRR was prepared by the DOF LSG in consultation with experts, practitioners and professors in commercial laws and credit transactions of the UP Law Center.
RA 11057 aims to promote economic activity by increasing access to least-cost credit, particularly for micro, small and medium enterprises (MSMEs), by establishing a unified and modern legal framework for securing obligations with personal property.
Under the PPSA, MSMEs, farmers and fishermen can now secure their borrowings by using nontraditional collateral such as account receivables, inventory, negotiable instruments, electronic securities, crops, livestock, consumer goods, machinery, equipment, as well as intellectual-property rights.
“It is the policy of the State to promote economic activity by increasing access to least cost credit, particularly for micro, small and medium enterprises, by establishing a unified and modern legal framework for securing obligations with personal property,” the draft IRR said.