Practice question
A repair business provides ordinary-course services to goods and retains possession pending payment. Section20’s requirements are met. Which priority rule applies against a perfected security interest in those goods?
- The service provider has priority until paid
- The perfected creditor always defeats the retaining repairer
- The repairer must first own the goods absolutely
- Only the debtor’s relatives can rank first
- The repairer’s rights necessarily expire before payment
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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