Practice question
A signed security agreement reasonably identifies collateral as “all inventory.” The grantor argues that Section 7 invariably requires a serial number for every individual item. Which is correct?
- Every generic description is forbidden
- Only inventory worth less than PHP1,000 qualifies
- Only an oral list may identify it
- Every asset in the country is automatically collateral
- Section 7 accepts a reasonably identifying general description and expressly recognizes inventory categories
Legal references
- RA 11057, Sections 6-7: https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html
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