CORPORATIONS ACT 2001 - SECT 442B Dealing with property subject to circulating security interests

CORPORATIONS ACT 2001 - SECT 442B

Scope

  (1)   This section applies if a security interest in property (the secured property ) of a company under administration was a circulating security interest when the interest arose, but has stopped being a circulating security interest because:

  (a)   in the case of a PPSA security interest--the property has stopped being a circulating asset (within the meaning of the Personal Property Securities Act 2009 ); or

  (b)   in the case of a security interest that was a floating charge when it arose--the floating charge has since become a fixed or specific charge.

Note 1:   A circulating security interest can be either a PPSA security interest to which a circulating asset has attached or a floating charge: see the definition of circulating security interest in section   9.

Note 2:   For the meaning of circulating asset , see section   340 of the Personal Property Securities Act 2009 .

Security interest in circulating asset

  (2)   Subject to sections   442C and 442D, in the case of a PPSA security interest, the administrator may deal with any of the secured property in any way the company could deal with the secured property immediately before it stopped being a circulating asset.

Floating charge

  (3)   Subject to sections   442C and 442D, in the case of a security interest that was a floating charge when it arose, the administrator may deal with any of the secured property as if the security interest were still a floating charge.

Note:   Section   442C deals with the disposal of encumbered property by an administrator. Section   442D makes the administrator's functions and powers subject to those of a secured party, receiver or controller.