MANILA – An official of the Department of Finance (DOF) said the banking industry need not fret about the perceived impact of the Personal Property Security Act on their enterprises since all their concerns will be heard.
This was stressed by Finance Assistant Secretary Danielle Marie Rieza-Culangen after noting that all stakeholders will be given until end-July 2019 to submit their comments on the draft Implementing Rules and Regulations (IRR) of the law.
She explained that the law impacts the bank’s business, in as much as there won’t be chattel mortgage anymore.
The Chattel Mortgage Law defines chattel mortgage as “a conditional sale of personal property as security for the payment of a debt, or the performance of some other obligation specified therein, the condition being that the sale shall be void upon the seller paying to the purchaser a sum of money or doing some other act named.”
It said chattel mortgage will be registered with the local Registry of Deeds.
For banks, they earn from chattel mortgage through car loans.
Rieza-Culangen said authorities are “trying to make sure they’re (banks are) accommodated, or at least their comments are heard.”
She said bank representatives have raised several issues like the transfer of accounts receivable.
She explained that “for those more complex transactions we’re considering maybe issuing special guidelines specific to those kind of transactions but that would depend mostly on the comments that we receive so the deadline in on July 31.”
“So, we’ll see by then,” she said.
The DOF official said the IRR will be issued “within August”.
“We’re way past the deadline already set by law but we wanted to do this consultation before we actually issue,” he said.
President Rodrigo R. Duterte signed this measure into law on August 17, 2018.
Under the law, a “Registry shall be established in and administered by the LRA (Land Registration Authority).
It said the Registry should have an option that can be accessed through electronic means for the registration of the property and in searching for notices.
Rieza-Culangen said an LRA official told them that the registry will be in place six months after the issuance of the IRR, and cited that the Registry “is more of an enhancement of their (LRA’s) existing system”.
The Department of Budget and Management (DBM) “is waiting for the IRR to be issued before (it) can release certain budgetary requirements,” she added. (PNA)
