PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 126 Apparent possession of collateral

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 126

  (1)   If:

  (a)   collateral cannot be readily moved from a grantor's premises; or

  (b)   adequate storage facilities are not readily available for collateral;

a secured party may seize the collateral under section   123 by taking apparent possession of the collateral.

Note:   This section does not apply in relation to collateral that is used predominantly for personal, domestic or household purposes (see subsection   109(5)).

  (2)   A secured party who takes apparent possession of collateral may dispose of the collateral under section   128 on the grantor's premises. However, the secured party must not cause the grantor any greater cost or inconvenience than is necessarily incidental to the disposal.

  (3)   To avoid doubt, a secured party who takes apparent possession of collateral in accordance with this section does not perfect the secured party's security interest in the collateral.