The Department of Finance (DOF) has set in motion the full implementation of the Personal Property Security Act (PPSA) with its recent issuance of rates for the fees on the use of the electronic registry, the agency said in a statement yesterday.
Republic Act No. 11057 or the PPSA aims to promote economic activity among micro, small and medium enterprises (MSMEs) as well as farmers and fisherfolk by establishing a unified modern legal framework for securing obligations with personal property.
The PPSA allows MSMEs and small farmers and fisherfolk to offer movable properties as loan security collateral to encourage lenders to extend more credit to these sectors.
On Sept. 17, 2021, the DOF issued Administrative Order (AO) No. 001-2021, which set the fees to be imposed in connection with the use of the Personal Property Security Registry (PPSR).
To allow the recovery of the cost of establishing and operating the PPSR, a single rate structure of fee is adopted for the PPSR services fees.
“This law will benefit MSMEs along with small farmers and fisherfolk as the establishment of a modern and unified legal framework for personal property security will now let them use their movable properties as collateral for their loans, in keeping with President Duterte’s goal of expanding the ordinary Filipino’s access to easy credit and promoting financial inclusion on his watch,” Carlos Dominguez, DOF secretary, said.
Under the AO, the registration of new notices will be charged P380 each, while the registration of amendment notices, access to certified true copies and other certifications will incur a P30 fee. – Angela Celis