Practice question
Subject to applicable insolvency law, what does Section22 say about a security interest perfected before insolvency proceedings begin?
- It remains perfected and retains its prior priority
- It automatically vanishes
- It always becomes junior to every unperfected interest
- It automatically transfers all ownership to the creditor
- It becomes a donation
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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