Practice question
After default, a creditor privately disposes of unique custom-built machinery to itself. It is not customarily sold on a recognized market and has no widely distributed standard price quotations. The creditor argues Section49 permits its own purchase at every private disposition. Which is correct?
- Section49(b) does not grant that unrestricted private-purchase right
- A creditor can always buy privately regardless of collateral type
- Every private sale automatically creates a recognized market
- The debtor’s default erases Section49(b)
- The creditor may deem its own handwritten price list widely distributed
Legal references
- RA11057 PPSA: https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html Sections47(b),48(a),49,51–52.
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