PERSONAL PROPERTY SECURITIES ACT 2009
Table of Provisions
CHAPTER 1--Introduction
PART 1.1----PRELIMINARY
PART 1.2----GENERAL APPLICATION OF THIS ACT
- 4 Guide to this Part
- 5 Crown to be bound
- 6 Connection with Australia
- 7 Application in the external Territories
- 8 Interests to which this Act does not apply
PART 1.3----DEFINITIONS
DIVISION 1--Introduction- 9 Guide to this Part DIVISION 2--The Dictionary
- 10 The Dictionary
- 11 Application of the DIVISION 3--Concepts relating to security interests and personal property
- 12 Meaning of
- 13 Meaning of
- 14 Meaning of
- 15 Meaning ofand related terms
CHAPTER 2--General rules relating to security interests
PART 2.1----GUIDE TO THIS CHAPTER
- 16 Guide to this Chapter
PART 2.2----SECURITY INTERESTS: GENERAL PRINCIPLES
- 17 Guide to this Part
- 18 General rules about security agreements and security interests
- 19 Enforceability of security interests against grantors--attachment
- 20 Enforceability of security interests against third parties
- 21 Perfection--main rule
- 22 Perfection--goods possessed by a bailee
PART 2.3----POSSESSION AND CONTROL OF PERSONAL PROPERTY
- 23 Guide to this Part
- 24 Possession
- 25 Control of an ADI account
- 26 Control of intermediated securities
- 27 Control of investment instruments
- 28 Control of a letter of credit
- 29 Control of negotiable instruments that are not evidenced by a certificate
PART 2.4----ATTACHMENT AND PERFECTION: SPECIFIC RULES
DIVISION 1--Introduction- 30 Guide to this Part DIVISION 2--Proceeds and transfer
- 31 Meaning of
- 32 Proceeds--attachment
- 33 Proceeds--perfection and temporary perfection
- 34 Transferred collateral--temporary perfection after transfer DIVISION 3--Collateral returned to grantor or debtor
- 35 Returned collateral--from bailee
- 36 Returned collateral--negotiable instruments and investment instruments
- 37 Returned collateral--following sale or lease
- 38 Returned collateral--accounts and chattel paper DIVISION 4--Relocation of collateral or grantor to Australia etc.
- 39 Relocation--main rule
- 40 Relocation--intangible property and financial property
PART 2.5----TAKING PERSONAL PROPERTY FREE OF SECURITY INTERESTS
- 41 Guide to this Part
- 42 Application of this Part
- 43 Taking personal property free of unperfected security interest
- 44 Taking personal property free of security interest if serial number incorrect or missing
- 45 Taking motor vehicles free of security interest
- 46 Taking personal property free of security interest in ordinary course of business
- 47 Taking personal, domestic or household property free of security interest
- 48 Taking currency free of security interest
- 49 Taking investment instrument or intermediated security free of security interest in the ordinary course of trading
- 50 Taking investment instrument free of security interest
- 51 Taking intermediated security free of security interest
- 52 Taking personal property free of temporarily perfected security interest
- 53 Rights of secured party and transferee on taking personal property free of security interest
PART 2.6----PRIORITY BETWEEN SECURITY INTERESTS
DIVISION 1--Introduction- 54 Guide to this Part DIVISION 2--Priority of security interests generally
- 55 Default priority rules
- 56 How a security interest is continuously perfected
- 57 Priority of security interests perfected by control
- 58 Priority of advances
- 59 Priority rules and intervening security interests
- 60 Transfer of security interests does not affect priority
- 61 Voluntary subordination of security interests DIVISION 3--Priority of purchase money security interests
- 62 When purchase money security interests take priority over other security interests
- 63 Priority between competing purchase money security interests in collateral
- 64 Non-purchase money security interests in accounts
- 65 Possession of goods shipped by a common carrier DIVISION 4--Priority of security interests in transferred collateral
- 66 Application of this Division
- 67 Priority when transferor-granted interest has been continuously perfected
- 68 Priority when there is a break in the perfection of the transferor-granted interest DIVISION 5--Priority of creditors, and purchasers of negotiable instruments, chattel paper and negotiable documents of title
- 69 Priority of creditor who receives payment of debt
- 70 Priority of person who acquires a negotiable instrument or an interest in a negotiable instrument
- 71 Priority of person who acquires chattel paper or an interest in chattel paper
- 72 Priority of holder of negotiable document of title DIVISION 6--Priority of other interests
- 73 Priority between security interests and declared statutory interests
- 74 Execution creditor has priority over unperfected security interest
- 75 Priority of security interests held by ADIs
- 76 Priority of security interests in returned goods
- 77 Priority of certain security interests if there is no foreign register
PART 2.7----TRANSFER OF INTERESTS IN COLLATERAL
- 78 Guide to this Part
- 79 Transfer of collateral despite prohibition in security agreement
- 80 Rights on transfer of account or chattel paper--rights of transferee and account debtor
- 81 Rights on transfer of account or chattel paper--contractual restrictions and prohibitions on transfer
CHAPTER 3--Specific rules for certain security interests
PART 3.1----GUIDE TO THIS CHAPTER
- 82 Guide to this Chapter
PART 3.2----AGRICULTURAL INTERESTS
- 83 Guide to this Part
- 84 Relationship between security interest in crops and interest in land
- 84A Attachment of security interests to crops while they are growing and to the products of livestock
- 85 Priority of crops
- 86 Priority of livestock
PART 3.3----ACCESSIONS
- 87 Guide to this Part
- 88 Continuation of security interests in accessions
- 89 Default rule--interest in accession has priority
- 90 Priority interest in whole--before security interest in accession is perfected
- 91 Priority interest in whole--security interest in accession attaches after goods become accession
- 92 Secured party must not damage goods when removing accession
- 93 Reimbursement for damage caused in removing accessions
- 94 Refusal of permission to remove accession
- 95 Secured party must give notice of removal of accession
- 96 When person with an interest in the whole may retain accession
- 97 Court order about removal of accession
PART 3.4----PROCESSED OR COMMINGLED GOODS
- 98 Guide to this Part
- 99 Continuation of security interests in goods that become processed or commingled
- 100 Perfection of security interest in goods that become processed or commingled applies to product or mass
- 101 Limit on value of priority of goods that become part of processed or commingled goods
- 102 Priority where more than one security interest continues in processed or commingled goods
- 103 Priority of purchase money security interest in processed or commingled goods
PART 3.5----INTELLECTUAL PROPERTY
- 104 Guide to this Part
- 105 Implied references to intellectual property rights
- 106 Intellectual property licences and transfers of intellectual property
CHAPTER 4--Enforcement of security interests
PART 4.1----GUIDE TO THIS CHAPTER
- 107 Guide to this Chapter
PART 4.2----GENERAL RULES
- 108 Guide to this Part
- 109 Application of this Chapter
- 110 Rights and remedies
- 111 Rights and duties to be exercised honestly and in a commercially reasonable manner
- 112 Rights and remedies under this Chapter
- 113 Recovering judgment or issuing execution does not extinguish a security interest in collateral
- 114 Rights and remedies under this Chapter are cumulative
- 115 Contracting out of enforcement provisions
- 116 Application while there is a receiver or another controller of property
- 117 Obligations secured by interests in personal property and land
- 118 Enforcing security interests in accordance with land law decisions
- 119 Relationship with consumer credit legislation
- 120 Enforcement of security interests in liquid assets--general
- 121 Enforcement of security interests in liquid assets--notice to higher priority parties and grantor
PART 4.3----SEIZURE AND DISPOSAL OR RETENTION OF COLLATERAL
DIVISION 1--Introduction- 122 Guide to this Part DIVISION 2--Seizing collateral
- 123 Secured party may seize collateral
- 124 Secured party who has perfected a security interest in collateral by possession or control
- 125 Obligation to dispose of or retain collateral
- 126 Apparent possession of collateral
- 127 Seizure by higher priority parties--notice DIVISION 3--Disposing of collateral (including by purchasing collateral)
- 128 Secured party may dispose of collateral
- 129 Disposal by purchase
- 130 Notice of disposal of collateral
- 131 Duty of secured party disposing of collateral to obtain market value
- 132 Secured party to give statement of account
- 133 Disposing of collateral free of interests DIVISION 4--Retaining collateral
- 134 Proposal of secured party to retain collateral
- 135 Notice of retention of collateral
- 136 Retaining collateral free of interests DIVISION 5--Objection to purchase or retention
- 137 Persons entitled to notice may object to proposal
- 138 Person making objection may be requested by secured party to prove interest DIVISION 6--Seizure and disposal or retention of crops and livestock
- 138A Meaning ofand
- 138B Seizure and disposal or retention of crops
- 138C Seizure and disposal or retention of livestock
PART 4.4----RULES APPLYING AFTER ENFORCEMENT
- 139 Guide to this Part
- 140 Distribution of proceeds received by secured party
- 141 Secured party may take steps to reflect transfer of title
- 142 Entitled persons may redeem collateral
- 143 Entitled persons may reinstate security agreement
- 144 When certain enforcement notices are not required
CHAPTER 5--Personal Property Securities Register
PART 5.1----GUIDE TO THIS CHAPTER
- 145 Guide to this Chapter
PART 5.2----ESTABLISHMENT OF THE REGISTER
PART 5.3----REGISTRATION
- 149 Guide to this Part
- 150 Registration--on application
- 151 Registration--belief about security interest
- 152 Registration--location of personal property and interested persons outside Australia
- 153 Financing statements with respect to security interests
- 154 Financing statements with respect to prescribed property
- 155 Meanings ofand
- 156 Verification statements--Registrar to give to secured parties
- 157 Verification statements--secured parties to give notice to grantors
- 158 Verification statements--publication as alternative
PART 5.4----WHEN A REGISTRATION IS EFFECTIVE
- 159 Guide to this Part
- 160 Registration time--general
- 161 Registration time--security agreements and interests
- 162 Registration time--transfers
- 163 Effective registration
- 164 Defects in registration--general rule
- 165 Defects in registration--particular defects
- 166 Defects in registration--temporary effectiveness
- 167 Security interest in certain property becomes unperfected
- 168 Maintenance fees
PART 5.5----ACCESSING THE REGISTER TO SEARCH FOR DATA
- 169 Guide to this Part
- 170 Search--general
- 171 Search--criteria
- 172 Search--by reference to details of grantor who is an individual
- 173 Search--interference with privacy
- 174 Search--written search results and evidence etc.
- 175 Copies of financing statements and verification statements
- 176 Reports by Registrar
PART 5.5A----CONDITIONS ON DATA ACCESS
PART 5.6----AMENDMENT DEMANDS
DIVISION 1--Introduction- 177 Guide to this Part
- 178 How amendment demands are given DIVISION 2--Amendment demands: administrative and judicial process
- 179 Scope of Subdivision
- 180 Administrative process--amendment notices
- 181 Administrative process--registration amendments
- 182 Judicial process for considering amendment demand
PART 5.7----REMOVAL OF DATA AND CORRECTION OF REGISTRATION ERRORS
- 183 Guide to this Part
- 184 Removal of data--general grounds
- 185 Removal of data--registration ineffective for 7 years or more
- 186 Incorrectly removed data--restoration
- 187 Records of removed data
- 188 Correction of registration errors
PART 5.8----FEES, ADMINISTRATIVE REVIEW AND ANNUAL REPORTS
PART 5.9----REGISTRAR OF PERSONAL PROPERTY SECURITIES
- 193 Guide to this Part
- 194 Registrar--establishment of office
- 195 Registrar--functions and powers
- 195A Registrar--investigations
- 196 Registrar--acting appointments
- 197 Registrar--delegation
- 198 Registrar--resignation
- 199 Registrar--termination
- 200 Deputy Registrar--establishment of office
- 201 Deputy Registrar--functions and powers
- 202 Deputy Registrar--resignation
- 203 Deputy Registrar--termination
CHAPTER 6--Judicial proceedings
PART 6.1----GUIDE TO THIS CHAPTER
- 204 Guide to this Chapter
PART 6.2----JUDICIAL PROCEEDINGS GENERALLY
DIVISION 1--Introduction- 205 Guide to this Part
- 206 Scope of this Part DIVISION 2--Conferral of jurisdiction
- 207 Jurisdiction of courts
- 208 Cross-jurisdictional appeals
- 209 Courts to act in aid of each other DIVISION 3--Transfers between courts
- 210 Application of this Division
- 211 Exercise of transfer power
- 212 Criteria for transfers between courts
- 213 Initiating transfers between courts
- 214 Documents and procedure
- 215 Conduct of transferred proceedings
- 216 Entitlement to practise as barrister or solicitor
- 217 Limitation on appeals DIVISION 4--Registrar's role in judicial proceedings
- 218 Intervention in judicial proceedings
- 219 Initiation of judicial proceedings
PART 6.3----CIVIL PENALTIES AND ENFORCEABLE UNDERTAKINGS
- 220 Guide to this Part
- 221 Civil penalty provisions
- 222 Enforceable undertakings
CHAPTER 7--Operation of laws
PART 7.1----GUIDE TO THIS CHAPTER
- 232 Guide to this Chapter
PART 7.2----AUSTRALIAN LAWS AND THOSE OF OTHER JURISDICTIONS
- 233 Guide to this Part
- 234 Scope of this Part
- 235 Meaning of
- 236 Commonwealth laws may provide for governing law
- 237 Express agreement
- 238 Governing laws--goods
- 239 Governing laws--intangible property
- 240 Governing laws--financial property and rights evidenced by letters of credit
- 241 Governing laws--proceeds
PART 7.3----CONSTITUTIONAL OPERATION
DIVISION 1--Introduction- 242 Guide to this Part DIVISION 2--Constitutional basis
- 243 Constitutional basis for this Act
- 244 Meaning of
- 245 Meaning of
- 246 Non-referring State operation--overview
- 247 Non-referring State operation--persons
- 248 Non-referring State operation--activities
- 249 Non-referring State operation--interests
- 250 Non-referring State operation--inclusion of data in register
- 251 Personal property taken free of security interest when Act begins to operate
- 252 Priority between constitutional and non-constitutional security interests DIVISION 3--Constitutional guarantees
- 252A No constitutional preference to one State over another
- 252B No unjust acquisition of property
PART 7.4----RELATIONSHIP BETWEEN AUSTRALIAN LAWS
DIVISION 1--Introduction- 253 Guide to this Part DIVISION 2--Concurrent operation
- 254 Concurrent operation--general rule
- 255 Concurrent operation--regulations may resolve inconsistency DIVISION 3--When other laws prevail
- 256 When other laws prevail--certain other Commonwealth Acts
- 257 When other laws prevail--security agreements
- 258 When other laws prevail--personal property, security interests and matters excluded from State amendment referrals
- 259 When other laws prevail--exclusion by referring State law or Territory law DIVISION 4--When this Act prevails
- 261 When this Act prevails--registration requirements
- 262 When this Act prevails--assignment requirements
- 263 When this Act prevails--formal requirements relating to agreements
- 264 When this Act prevails--attachment and perfection of security interests
CHAPTER 8--Miscellaneous
PART 8.1----GUIDE TO THIS CHAPTER
- 265 Guide to this Chapter
PART 8.2----VESTING OF CERTAIN UNPERFECTED SECURITY INTERESTS
- 266 Guide to this Part
- 267 Vesting of unperfected security interests in the grantor upon the grantor's winding up or bankruptcy etc.
- 267A Vesting in grantor of security interest that attaches after winding up etc.
- 268 Security interests unaffected by section 267
- 269 Certain lessors, bailors and consignors entitled to damages
PART 8.3----EXERCISE AND DISCHARGE OF RIGHTS, DUTIES AND OBLIGATIONS
- 270 Guide to this Part
- 271 Entitlement to damages for breach of duties or obligations
- 272 Liability for damages
- 273 Application of Act not affected by secured party having title to collateral
PART 8.4----PROVISION OF INFORMATION BY SECURED PARTIES
- 274 Guide to this Part
- 275 Secured party to provide certain information relating to security interest
- 276 Obligation to disclose successor in security interest when request made
- 277 Time for responding to a request
- 278 Application to court for exemption or extension of time to respond to requests
- 279 Persons may recover costs arising from request
- 280 Application to court for response to request etc.
- 281 Application to court in relation to costs charged
- 282 Consequences of not complying with court order
- 283 Estoppels against persons who respond to a request
PART 8.5----NOTICES AND TIMING
- 284 Guide to this Part
- 285 Application of this Part--notices etc.
- 286 Notices--writing
- 287 Notices--registered secured parties
- 288 Notices--more than one registered secured party
- 289 Notices etc. must be given to persons registered as secured parties using identifier
- 290 Notices--deceased persons
- 291 Notices--Court orders
- 292 Notices--formal defects
- 293 Timing--applications for extension of time
- 294 Timing--references to time in this Act
PART 8.6----ONUS OF PROOF AND KNOWLEDGE
- 295 Guide to this Part
- 296 Onus of proof
- 297 Meaning of
- 298 Actual or constructive knowledge by bodies corporate and other entities
- 299 Actual or constructive knowledge in relation to certain property transfers
- 300 Registration of data does not constitute constructive notice
PART 8.7----FORMS AND REGULATIONS
- 301 Guide to this Part
- 302 Approved forms
- 303 Regulations
CHAPTER 9--Transitional provisions
PART 9.1----GUIDE TO THIS CHAPTER
- 304 Guide to this Chapter
PART 9.2----KEY CONCEPTS
PART 9.3----INITIAL APPLICATION OF THIS ACT
- 309 Guide to this Part
- 310 When this Act starts to apply, and in relation to which matters
- 311 Enforceability of transitional security interests against third parties
- 312 Declared statutory security interests
- 313 Enforcement of security interests in intellectual property licences
- 314 Enforcement of security interests provided for by security agreements
- 315 Starting time for registrations
- 316 Governing laws
- 317 Constitutional and non-constitutional interests
- 318 References to charges and fixed and floating charges
PART 9.4----TRANSITIONAL APPLICATION OF THIS ACT
DIVISION 1--Introduction- 319 Guide to this Part DIVISION 2--Attachment, perfection and priority of transitional security interests
- 320 Guide to priority rules for transitional security interests
- 321 Attachment rule
- 322 Perfection rule
- 322A Priority rule--priority between transitional security interest and security interest perfected by control
- 323 Priority rule--priority otherwise undetermined
- 324 Priority rule--certain security interests upon insolvency or bankruptcy DIVISION 6--Migration of personal property interests
- 330 Scope of Division
- 331 Requirement for Commonwealth officers etc. to provide data
- 332 Meaning of
- 333 Registration with respect to migrated data
- 334 Incorrectly registered migrated data
- 335 No requirement for notice of verification statement DIVISION 7--Preparatory registration relating to transitional security interests
- 336 Preparatory registration--transitional security interests DIVISION 8--Transitional security interests: registration defects
- 337 Registration effective despite certain defects
- 337A Registration defective if collateral is not covered by transitional security agreement
PART 9.5----CHARGES AND FIXED AND FLOATING CHARGES
- 338 Guide to this Part
- 339 References to charges and fixed and floating charges
- 340 Meaning of
- 341 Meaning ofand
- 341A Control of an ADI account