PART 3: INSIGHTS ON THE ENFORCEMENT OF PPSA

Enforcement of Security Interest recognizes the rights of all parties involved of the said
interest. It refers to the rights or remedies of the secured creditor, grantor and buyers or third
party personalities who acquire collateral.
In conformity with the rights of the Secured Creditor, First is right of Repossession of the
Collateral. Upon default of the grantor, creditor may take possession of collateral extrajudicially
. the requirements are: A.) Such it is in stipulation. B.) Repossession can be done without in
breach of the peace, entering into the grantor's residence. Second, right of higher ranking
secured creditor. He can take over others creditors right even if other creditors have interest.
Right to priority can be invoked of before collateral is disposed or sold to. Third, right to retention
- after default of the grantor he may retain the collateral, fully or partially by sending proposal
to the grantor or to others who perfected the interest through registration 5 days before sending
of proposal. Fourth, sell or dispose of the collateral – it must be sold in present condition or
following any commercial preparation to entice buyers. Selling may be done in private or public,
must be done in good faith and collateral must be awarded to highest bidder. Fifth, special right
- the debtor of the grantor can be instructed by the creditor to make payments to him for
accounts receivable that’s supposed to be received by the grantor. Sixth, right to damages if the
grantor breaches any or all of the provision of the Personal Property Security Act.

In accordance with the rights of the grantor, if creditor is in breach of the PPSA he can ask the
court order restraint or stay of the collateral and prevent the disposition of which. Second, he
has a right of redemption on the collateral. However, the latter right cannot be applicable if
grantor makes waiver of such right or when collateral is disposed by creditor or creditor has
retained the collateral.

Third persons or known as the highest bidders also enjoys rights over the collateral. Right
accrues first off, when creditor disposes the collateral, buyer acquires the grantors right, free
from any rights of creditors or lein holders. Second, if collateral is licensed or leaded, licensee or
lessee have the right to enjoy it within the period. This happens only if creditor does not follow
the rules on disposition and that buyer, licensee or lessee is in good faith, that is, no knowledge
on rules on enforcement.