Practice question
A security interest in an instrument is perfected by possession, competing with one perfected by notice registration. What special priority does Section19 state?
- The possession-perfected interest has priority
- Registration invariably defeats possession
- Neither interest can exist
- The debtor chooses priority after default
- The later creditor always wins regardless of method
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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