PHILIPPINES Law and Practice Contributed by: Kerwin Tan, Eugene Kaw and Veronica Balbin, Tan Hassani and Counsels
3.4.4 Recognition and Enforcement of Foreign Judgments and Arbitral Awards A party may commence an action for recognition of a foreign judgment with a domestic court without re- examination of the matter as it enjoys a presumption of validity. For foreign arbitral awards made in a state that is a party to the New York Convention or that extends reciprocity and comity to awards made in the Phil - ippines, the lessor may apply for a Recognition and Enforcement of Foreign Arbitral Award at any time after receipt of the foreign arbitral award. Courts may hold hearings if deemed proper. If the foreign arbitral award was made in a state that is not a party to the New York Convention, the court may treat the award as a foreign judgment. 3.4.5 Secured Parties’ Right to Take Possession of Aircraft The Philippine High Court has declared that a credi - tor cannot immediately take possession of the object as it will constitute pactum commissorium, which is against good morals and public policy. Even if the par - ties agree, it may be deemed null and void. While the PPSA has allowed a creditor to take possession of secured collateral, to a certain extent, it has limited application to aircraft, which are governed by a differ - ent law. Therefore, taking possession of an aircraft to enforce a security is prohibited regardless of whether or not the lessee or operator consented. 3.4.6 Domestic Courts Competent to Decide on Enforcement Actions Philippine courts are competent to decide enforce - ment actions. The jurisdiction of the appropriate level trial court will be determined by the amount claimed in the action. 3.4.7 Summary Judgments or Other Relief See 2.6.4 Summary Judgment or Other Relief . 3.4.8 Judgments in Foreign Currencies See 2.6.7 Judgments in Foreign Currencies .
wide” basis. The CAAP Director-General shall have the power to impose liens on aircraft and machinery in the following circumstances: • if the charges and other fees are not paid in full on the due date, or if any part of the charges or the late payment penalty thereto remain unpaid; and • failure to pay administrative fines arising from viola - tion of any rules and regulations promulgated by the CAAP. 3.3.5 Verification of an Aircraft’s Freedom From Encumbrances A potential purchaser can verify that an aircraft is free of encumbrances by inquiring with the CAAP and checking the database of aircraft. The potential pur - chaser may also check the PPSR. 3.4 Enforcement 3.4.1 Differences Between Enforcing Security Assignments, Loans and Guarantees A secured loan involves having encumbered property to answer for the loan in case of non-payment. In the case of an unsecured loan, the creditor only relies on the principal debtor or the guarantor or surety’s com - mitment to pay. Thus, in a security assignment, the creditor may pro - ceed against the encumbered property, while in an unsecured loan the creditor may file an action against the debtor and the guarantor or surety. 3.4.2 Security Trustees’ Enforcement of Their Rights The parties are free to decide on the terms and condi - tions of their security agreement, so long as they are not contrary to law, morals, public policy or public order. The applicable governing law will therefore be relevant. The security trustee can enforce its rights pursuant to an agreed notice and acknowledgment by the lessor and the lessee. 3.4.3 Application of Foreign Laws The parties are free to stipulate their choice of govern - ing law and jurisdiction, so long as the choice of law and the terms and conditions are not contrary to law, morals, public order or public policy.
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