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    Notes Ra 11057

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    Jillian Roy
    This document discusses key points regarding the proposed Revised Negotiable Instruments Law (RA 11057) including: 1) It does not cover aircrafts and ships and repeals, amends, or modifies existing Chattel Mortgage law and provisions on pledge. 2) Section 68 requires an electronic registry to replace the existing chattel mortgage registry, but it is possible some creditors or third parties may be missed. 3) Various definitions are provided including commodity contracts, option contracts, control agreements, grantors, and secured creditors. An operating lease is distinguished from a financial lease.

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    Notes Ra 11057

    Uploaded by

    Jillian Roy
    224 views2 pages
    This document discusses key points regarding the proposed Revised Negotiable Instruments Law (RA 11057) including: 1) It does not cover aircrafts and ships and repeals, amends, or modifies existing Chattel Mortgage law and provisions on pledge. 2) Section 68 requires an electronic registry to replace the existing chattel mortgage registry, but it is possible some creditors or third parties may be missed. 3) Various definitions are provided including commodity contracts, option contracts, control agreements, grantors, and secured creditors. An operating lease is distinguished from a financial lease.

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    This document discusses key points regarding the proposed Revised Negotiable Instruments Law (RA 11057) including: 1) It does not cover aircrafts and ships and repeals, amends, or modifies existing Chattel Mortgage law and provisions on pledge. 2) Section 68 requires an electronic registry to replace the existing chattel mortgage registry, but it is possible some creditors or third parties may be missed. 3) Various definitions are provided including commodity contracts, option contracts, control agreements, grantors, and secured creditors. An operating lease is distinguished from a financial lease.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    224 views2 pages

    Notes Ra 11057

    Uploaded by

    Jillian Roy
    This document discusses key points regarding the proposed Revised Negotiable Instruments Law (RA 11057) including: 1) It does not cover aircrafts and ships and repeals, amends, or modifies existing Chattel Mortgage law and provisions on pledge. 2) Section 68 requires an electronic registry to replace the existing chattel mortgage registry, but it is possible some creditors or third parties may be missed. 3) Various definitions are provided including commodity contracts, option contracts, control agreements, grantors, and secured creditors. An operating lease is distinguished from a financial lease.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    NOTES RA 11057

    ● does not cover aircrafts and ships


    ● repealed, amended, or modified Chattel Mortgage law, Civil Code provisions on pledge
    (sec. 66)
    o creditor will always collect the deficiency (inconsistent with Art 1334; Recto
    Law); Art. 1484
    o Whether a law is repealed, amended, or modified may be subject to interpretation

    ● Sec 68; already enacted but not yet implemented


    o Requires electronic registry; will replace the chattel mortgage registry
    o It’s possible for the system to miss a creditor or 3rd party that holds possession
    over the property

    ● Definition of Terms:
    o Commodity Contract
    ▪ (1) does not apply in the PH yet
    ▪ (2) commodity intermediary = broker

    COMMODITY FUTURES CONTRACT

    S
    B
    (represented by a broker) (represented
    by a broker)
    >agreed to sell goods on X date >
    < agreed to pay a fixed price<

    this will happen on a future date, which means that although the
    price may change, S is still obliged to deliver and B may only pay
    the fixed price.

    OPTION CONTRACT

    S
    B
    (represented by a broker) (represented
    by a broker)
    >option to buy goods on X date >
    < option price + fixed price<

    difference between Commodity Futures Contract and an option, in


    the latter there is only a commitment to sell should B accept the
    option.
    o Control agreement
    ▪ An agreement among grantor (owner, may be a 3rd person), secured
    creditor, and intermediary (broker).
    ▪ Collateral belongs to grantor
    ▪ The parties agree that the secured creditor may give instructions tho the
    intermediary without need for grantor’s consent.

    D << P10M<< C
    >> P + % >>
    >> assignment by way of security>>
    *needs the bank’s consent

    o Grantor
    ▪ Non-intermediated securities – there is no intermediary, no broker
    ▪ Trust receipt transaction
    ● *trust receipts; lender granting a loan to the borrower who will not
    buy goods from X. The borrower will issue a trust receipts when
    the goods are delivered. The borrower holds the goods for lender in
    trust. If B does not pay, it’s estafa

    o Registry
    ▪ Must be searchable

    o Secured creditor
    ▪ What is an operating lease?
    ● Financial lease – it will be recorded as a loan.

    ●Operating lease – the lessor recovers (not necessarily through one


    lease contract) not just during the guarantee period, you have an
    eventual sale, allows for the use of an asset but does not convey . .
    . , will be recorded as a lease contract and not considered a debt.
    o Defined in jurisprudence (CHECK RECORDING, 10.21)
    ▪ E-commerce act

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