Jerome D. Canlas | Francis Eric I. Santos
On 13 February 2025, the Land Registration Authority (“LRA”), in partnership with the Department of Finance, the Department of Justice, and the Bankers Association of the Philippines, launched the Personal Property Security Registry (“Registry”). This online registry was established in accordance with the provisions of Republic Act No. 11057 (“R.A. No. 11057”), otherwise known as the Personal Property Security Act. R.A. No. 11057 governs transactions that secure an obligation with movable collateral through the creation of a security interest, which is defined under Section 3(j) as “a property right in collateral that secures payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and regardless of the type of asset, the status of the grantor or secured creditor, or the nature of the secured obligation”.
Under Section 3(h), the Registry is defined as “the centralized and nationwide electronic registry established in the Land Registration Authority (LRA) where notice of a security interest and a lien in personal property may be registered”. Section 26 imposes the LRA with the obligation to establish, administer, and provide the means for registering and searching notices within the Registry.
Section 12(a) provides that a security interest may be perfected through three methods, one of which is through the registration of a notice with the Registry. After perfection of the security interest, it becomes effective against third parties, as stated under Section 11. The Registry allows a person to search notices registered within its database. The information in these notices are considered under Section 27 as public records. The electronic records of the Registry, on the other hand, serve as official records.
As provided in the Registry, a security interest may be created over all forms of personal properties, whether tangible or intangible, as defined by the Civil Code, including but not limited to:
- Rights arising from contracts;
- Equipment;
- Inventory;
- Accounts receivable;
- Intellectual property;
- Agricultural products;
- Consumer goods;
- Investment property;
- Chattel paper;
- Fixtures; and
- Proceeds.
The Registry further provides the types of notices that may be registered, as follows:
- Register Notice – One that creates an official record that indicates a creditor’s claim over personal property as collateral for a loan or obligation;
- Search Notice – One that allows individuals or businesses to check if there are any existing claims or security interests registered against personal property;
- Amend Notice – One that allows the amendment of registration, which entails the updating or modification of details of an existing record;
- Terminate Notice – One that allows the termination of registration, which results in the removal of the record from the Registry;
- Certify Notice – One that allows the certification of registration, which involves the obtaining of an official document that confirms the details of a registration or search result; and
- Auction Notice – One that results in a public announcement that personal property, which is subject to a security interest, will be sold at auction.
Before one may register their security interest, users must create an account in the Registry. Account types vary based on the nature of the registrant (individual or juridical entity). Individual registrants must provide personal identification details, such as the registrant’s name, address, and valid ID. Juridical entity registrants, on the other hand, must provide corporate or organizational details such as business name, registration number, and authorized representative’s information.
The Registry charges fees for its services. In addition to the fees imposed by the Registry, the registrant may pay additional charges imposed by a bank depending on the payment method used.
The Registry may be accessed through this link, while R.A. No. 11057 may be accessed through this link.