PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 239 Governing laws--intangible property

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 239

Main rules

  (1)   The validity of a security interest in intangible property is governed by the law of the jurisdiction (other than the law relating to conflict of laws) in which the grantor is located when the security interest attaches, under that law, to the property.

  (2)   At a particular time, the perfection, and the effect of perfection or non - perfection, of a security interest in intangible property is governed by the law of the jurisdiction (other than the law relating to conflict of laws) in which the grantor is located at that time.

Intellectual property

  (3)   In relation to a security interest in intellectual property or an intellectual property licence:

  (a)   subject to paragraph   (c), the validity of the security interest is governed by the law of the jurisdiction (other than the law relating to conflict of laws) in which the grantor is located when the security interest attaches, under that law, to the property or licence; and

  (b)   subject to paragraph   (c), at a particular time, the perfection, and the effect of perfection or non - perfection, of the security interest is governed by the law of the jurisdiction (other than the law relating to conflict of laws) in which the grantor is located at that time; and

  (c)   the following matters are governed by the law of the jurisdiction (other than the law relating to conflict of laws) by or under which the property or licence is granted, if that law provides for the public registration or recording of the security interest, or of a notice relating to the security interest:

  (i)   whether a successor in title to the grantor's interest in the property or licence takes it free of a security interest;

  (ii)   the validity of the security interest against a transferee of the property or licence.

ADI accounts

  (4)   Despite subsections   (1) and (2), a security interest in an ADI account is governed by the law of the jurisdiction (other than the law relating to conflict of laws) that governs the ADI account.

  (5)   However, the parties to a security agreement may agree in writing that the law of another jurisdiction governs the security interest in the ADI account if:

  (a)   the ADI consents in writing; and

  (b)   applying the law of that other jurisdiction would not be manifestly contrary to public policy.

Rights evidenced by letters of credit not covered

  (6)   This section does not apply to a right evidenced by a letter of credit that states that the letter of credit must be presented on claiming payment or requiring the performance of an obligation.

Note 1:   For the priority of a security interest in an account if there is no foreign register, see section   77.

Note 2:   For the location of bodies corporate, bodies politic and individuals, see section   235.

Note 3:   Under section   237, the parties to a security agreement may expressly provide for the law of the Commonwealth to apply instead.

Note 4:   Rights mentioned in subsection   (6) are dealt with in the same way as financial property by section   240.