Practice question
A security agreement covers equipment the grantor will acquire next year. When is the security interest in that future equipment created under Section 5(b)?
- Immediately even if the grantor never obtains any right
- Only when the creditor changes its name
- Only after the grantor dies
- When the grantor acquires rights in it or power to encumber it
- Never, future property is categorically prohibited
Legal references
- RA 11057, Section 5(b): https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html
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