Practice question
All obligations under the security agreement have been performed and no commitment for future advances remains. The grantor makes a written Section39 demand. The secured creditor refuses to terminate unless paid a special compliance fee. Which is correct?
- The creditor must comply within the statutory period and may not charge that fee
- Payment of all obligations makes the demand impossible
- The creditor may charge any compliance fee
- The notice necessarily lasts forever
- Only the creditor’s competitors can seek termination
Legal references
- RA11057 PPSA: https://lawphil.net/statutes/repacts/ra2018/ra_11057_2018.html Sections28(f),29,34–43.
- LRA Circular02-2025 PPSR operationalization: https://lra.gov.ph/wp-content/uploads/2025/07/02-2025-OPERATIONALIZATION-OF-THE-PERSONAL-PROPERTY-SECURITY-REGISTRY.pdf PPSR operation commenced February3,2025.
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