Practice question
Creditor A previously registered an interest in a security certificate. Creditor B later obtains a valid competing interest and perfects it by possession of that certificate. No other special rule changes the result. A relies only on earlier registration. Under Section18(e), which is correct?
- B’s possession-perfected certificate interest has the stated special priority
- Earlier registration invariably wins every certificate contest
- Possession can never perfect a certificate interest
- Both interests are automatically extinguished
- The issuer must pay the debt twice
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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