Second, the dual registration system requires that some of Chattel`s mortgages be registered with the Clerk of Deeds in various provinces.  This system applies in two situations. The first is that the secured personal property is located in a province different from the province where the mortgage resides. In this case, Chattel`s mortgage must be registered in the deeds register of both provinces. The second is when the guaranteed assets include shares of a company. If the company`s head office or head office is located in a province other than the one where the Mortgagor resides, a double registration is required.  The dual registration requirement has been criticized for its cumbersome and cost-effectiveness, as it unnecessarily requires potential creditors to search the records of each province where a mortgage granted by the debtor could be registered.  Gilmore`s observation is also true in the Philippines. In Giberson, a chatl mortgage granted by a partnership against subsequent creditors was cancelled because it did not contain good faith sworn insurance, whereas the mortgagee clearly did not commit fraud.  However, this risk to creditors should not be overestimated. Today, it is rare to find a Chatl mortgage without such an affidavit. Nevertheless, its preservation is at odds with modern credit security documents. In the United States, for example, Article 9 of the Single Code of Commerce (revised) (hereafter the UCC) abolished the signing formalities and related sworn assurances.
It is true that in some developed economies in the Asian region, there are laws such as the Bills of Sale Act and the Bills of Sale Ordinance that require compliance with certain subscription-related formalities, but they are colonial legacies of the 19th century, and even in these cases, there are now demands for reform.  However, the rules for creating Chatl`s Mortgage Act are theoretically simple. Anyone can create a Chatl mortgage for the benefit of any other person to secure personal property, material and intangible property, both available and acquired;  A single set of creative rules applies to both business and non-business borrowers; and a single security terminology with different effects and consequences is systematically used to create non-proprietary security in all security transactions. These give the Chattel mortgage a modern twist and promote a simple approach to security repair on personal property, especially when contrasted with the non-owner security of the common law, infamous for its tedious process, detailed security schedules and discrimination between business and non-professional borrowers.  The Chattel mortgage thus avoids certain complexities and anomalies that prevail in common law legal systems.  In this context, this paper examines whether there is now a reason to reform the Personal Property Security Act in the Philippines and, if so, what model the Philippines should consider in reforming its existing structure. To this end, the basic criteria of the Asian Development Bank (`ADB`) are adopted to assess the effectiveness of the Philippines` credit security legal framework on four key points: the creation, perfection, advertising and implementation of the deposit, Chattel mortgages and the receipt of trust. The basic criteria of the ADB are: the Chattel mortgage therefore functions as the “floating link” in the United States, a security that “floats” on all current and future assets of the debtor.   In England (the homeland of the common law), the “legal mortgage” itself has been criticized by academics and the courts.