Practice question
A purchase-money lender financing inventory perfects only after the grantor receives it and never gives the holder of a conflicting perfected inventory interest the required advance written notification. It nevertheless claims Section23(c) priority solely because it financed acquisition. Which is correct?
- The claimed special priority lacks the stipulated perfection and advance-notification conditions
- Purchase-money status alone invariably overrides every condition
- Notice after default always counts as advance notice
- The earlier creditor’s perfection is legally irrelevant in every case
- The grantor can cure priority retrospectively by oral declaration
Legal references
- RA11057 PPSA: https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html Sections18(c),(e),19–20,22–23.
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