Philippine Bar review · Question

Practice question: Enforcement of Security Interest

Multiple Choice Medium

Practice question

After default a creditor proposes retaining collateral in partial satisfaction. Every required addressee remains silent for twenty days. Is silence alone the required approval under Section 54(b)(2)?
  1. Yes, partial and full satisfaction always use identical consent rules
  2. Yes, every silence is consent
  3. Yes, if the creditor sends a reminder
  4. No, partial-satisfaction retention requires each addressee’s affirmative written consent within the statutory period
  5. No retention can ever be lawful

Legal references

  • RA 11057, Section 54(b)(2): https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html

Answer this question in flashcards to review your response and continue practicing.