Practice question
After default, a secured receivables creditor instructs the account debtor to pay it directly. The account debtor requests evidence of the security interest when the instruction is delivered. The creditor refuses solely because it prefers secrecy. Under Section48(a), which is correct?
- The creditor must provide the requested evidence of its security interest
- The creditor never needs to establish its interest on request
- The account debtor automatically owes twice the receivable
- The instruction creates a new unrelated debt without proof
- The account debtor must disclose every personal asset instead
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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