PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 130 Notice of disposal of collateral

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 130

  (1)   Unless subsection   (5) of this section or section   144 applies, a secured party who proposes to dispose of collateral on default by the debtor (whether or not under section   128) must give a notice, in accordance with this section, to:

  (a)   the grantor; and

  (b)   any other secured party with a security interest in the collateral that has a higher priority.

  (2)   A notice must:

  (a)   contain the name of the secured party giving the notice; and

  (b)   contain a description of the collateral; and

  (c)   state that the secured party proposes to dispose of the collateral, unless an obligation is performed, or an amount is paid, to satisfy the obligation secured by the security interest in the collateral, on or before the day specified in accordance with subsection   (3); and

  (d)   state that the notice is given for the purposes of this Act; and

  (e)   if the secured party is proposing to dispose of the collateral by purchase:

  (i)   contain details of rights of objection under Division   5; and

  (ii)   contain the address to which a notice of objection may be given under section   137; and

  (f)   contain any other matter required by the regulations for the purposes of this subsection.

Note:   The period under paragraph   (c) may be extended by a court under section   293.

  (3)   For the purposes of paragraph   (2)(c), the day specified in a notice given to a person:

  (a)   must be at least 10 business days after the day the notice is given; or

  (b)   if the person has given a written notice to the secured party specifying a shorter period to apply for the purposes of this section--before the end of that period.

  (4)   The notice may be given in the approved form.

When notice is not required

  (5)   The secured party is not required to give a notice to any person under subsection   (1) if:

  (a)   the secured party believes on reasonable grounds that the secured party was induced to enter into the relevant security agreement by fraud on the part of the debtor or the grantor; or

  (b)   the secured party believes on reasonable grounds that the collateral might perish before the end of 10 business days after the day the collateral is seized; or

  (c)   the secured party believes on reasonable grounds that there will be a material decline in the value of the collateral if it is not disposed of immediately after the day the collateral is seized; or

  (d)   the secured party believes on reasonable grounds that the expense of preserving the collateral is disproportionately large in relation to its value; or

  (e)   the collateral is foreign currency; or

  (f)   the collateral is to be disposed of in accordance with the operating rules of a clearing and settlement facility.