Upon the enactment of Republic Act No.

11057 or the Personal Property Security Act

(PPSA), movable properties can now be used as collateral for loans. The following provisons
of the New Civil Code were repealed, amended or modified upon the passage of Republic Act
11057 as they are inconsistent with provisions of the latter: Articles 2085-2123, 2127, 2140-
2141, 2243, and 2246-2247 of the Civil Code of the Philippines

In the Civil Code, immovable properties such as lands, buildings, and other immovables are
the preferred traditional collateral because these properties are secured by “titles” attached to
them hence easier to enforce in cases of breach. With the passage of PPSA, movable
properties, as well as future properties - provided that the security interest is not created
unless the borrower acquires rights or the power to encumber it, are now registrable
collateral.

The form and manner of creation, perfection, registration and enforcement are now
simplified. PPSA creates a single set of rules governing the perfection and enforceability of
security interests in movable property. PPSA also established a centralized online notice-
based national collateral registry lodged in Land Registration Authority (LRA) to lessen the
risks in accepting movable collaterals.

Below is a matrix of the comparisons on the provisons on Pledge and Mortgage under the
Civil Code against RA No. 11057 or the Personal Property Security Act (PPSA)