Philippine Bar review · Question

Practice question: Creation, Perfection, and Priority of Security Interest

Multiple Choice Hard

Practice question

Creditor A creates a security interest first but does not perfect it until after Creditor B properly registers a notice and satisfies the applicable creation and perfection requirements for the same ordinary collateral. No special priority rule applies. A argues that creation date alone necessarily wins. Which is correct?
  1. Section 17 generally uses registration or other perfection timing rather than creation order; the special-rule premise must be respected
  2. Creation date always defeats every later registration
  3. A creditor’s personal preference determines priority
  4. All competing interests automatically cancel each other
  5. Only the debtor’s age controls

Legal references

  • RA 11057, Section 17: https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html

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