TRUST RECEIPT LAW

By: Group 2
TRUST RECEIPT TRANSACTION
TRUST RECEIPT TRANSACTION

Shall refer to the written or printed

document signed by the entrustee in
favor of the entruster containing
terms and conditions substantially
complying with the provisions of
Trust Receipts Law.

(https://www.lawphil.net/statutes/presdecs/pd1973/pd_115_197
3.html?fbclid=IwAR1ok0W8Kag_-
2Jx8PIhfDVucubVmCX3FCoTDBOdWxSFFLo-CAWrV9qR-qc)
TRUST RECEIPT TRANSACTION
(a) “Document”

Printed or Written
TRUST RECEIPT TRANSACTION
(b) “Entrustee”

Refer to the person having or

taking possession of goods,
documents or instruments.
TRUST RECEIPT TRANSACTION
(c) “Entruster”

Shall refer to the person

holding title over the goods,
documents, or instruments
TRUST RECEIPT TRANSACTION
(d) “Goods”

Shall include chattels and personal property other

than: money, things in action, or things so affixed to
land as to become a part thereof.
TRUST RECEIPT TRANSACTION
(e) “Instrument”

Means any negotiable instrument as

defined in the Negotiable Instrument Law
TRUST RECEIPT TRANSACTION
(f) “Purchase”

means taking by sale,

conditional sale, lease,
mortgage, or pledge,
legal or equitable.
TRUST RECEIPT TRANSACTION
(g) “Purchaser”

means any person taking by purchase

TRUST RECEIPT TRANSACTION
(h) “Security Interest”

means a property interest in goods,

documents or instruments to secure
performance of some obligations of
the entrustee.
TRUST RECEIPT TRANSACTION
(i) “Person”

means, as the case may be, an individual, trustee, receiver, or other

fiduciary, partnership, corporation, business trust or other association, and
two more persons having a joint or common interest.
TRUST RECEIPT TRANSACTION

(k) “Value”

means any consideration

sufficient to support a
simple contract.
Brief history P.D No.115

(https://www.officialgazette.gov.ph/1973/01/29/preside
ntial-decree-no-115-s-1973/)
Brief history P.D No.115

pursuant to Proclamation No. 1081, dated

FERDINAND E. MARCOS September 21, 1972, and General Order No. 1,
President of the Philippines dated September 22, 1972
Brief history P.D No.115
• The utilization of trust
receipts, as a convenient
business device
• There is no specific law in
the Philippines that
governs trust receipt
transactions
• There commendations
contained in the report on
the financial system
Purpose of P.D No.115

• To encourage and promote the use of the

trust receipts
• To regulate trust receipt transactions
• To declare the misuse and/or
misappropriation of goods or proceeds or
instruments released under trust receipts as
a criminal offense
Obligation of an entruster
1.To give possession of the
goods to the entrustee.
2.To give at least 5 days
notice to the entrustee
of the intention to sell
the goods at the
intended public sale.
Remedies of an entruster
• Receive the proceeds of the sale of the
goods, documents or instruments
• Return of the said goods, documents or
intruments
• Cancel the trust in case the entrustee
defaults
• Take possession of the goods
• Sell the same at public or private (https://www.lawphil.net/statutes/presdecs/pd1973/
pd_115_1973.html?fbclid=IwAR1ok0W8Kag_-
posession 2Jx8PIhfDVucubVmCX3FCoTDBOdWxSFFLo-
CAWrV9qR-qc)