PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 24 Possession
PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 24
PossessionPossession by one party exclusive of possession by others
(1) A secured party cannot have possession of personal property if the property is in the actual or apparent possession of the grantor or debtor, or another person on behalf of the grantor or debtor.
(2) A grantor or debtor cannot have possession of personal property if the property is in the actual or apparent possession of the secured party, or another person on behalf of the secured party.
Timing rule for possession of goods transported by common carrier
(3) A grantor or debtor to whom goods are transported by a common carrier acquires possession of the goods only when the earlier of the following occurs:
(a) the grantor or debtor, or another person at the request of the grantor or debtor, actually acquires possession of the goods;
(b) the grantor or debtor, or another person at the request of the grantor or debtor, acquires possession of a document of title to the goods.
Possession of certain negotiable instruments
(4) A person (the first person ) has possession of a negotiable instrument that is not evidenced by an electronic record if, and only if, the first person, or another person on behalf of the first person, takes physical possession of the instrument.
Note: For possession of investment instruments, see subsection 24(6).
Possession of chattel paper that is evidenced electronically
(5) A secured party has possession of chattel paper that is evidenced by an electronic record if, and only if:
(a) a single authoritative copy of the record exists which is unique, identifiable and unalterable (except as set out below); and
(b) the authoritative copy identifies the secured party as the transferee of the record; and
(c) the authoritative copy is communicated to, and maintained by, the secured party or the secured party's agent; and
(d) copies or revisions of the record that change the transferee of the authoritative copy can be made only with the participation of the secured party; and
(e) each copy of the authoritative copy (or any copy of such a copy) is readily identifiable as a copy that is not the authoritative copy; and
(f) any revision of the authoritative copy is readily identifiable as an authorised or unauthorised copy.
Possession of investment instruments
(6) Despite subsections (1) and (2), a person (the possessor ) has possession of an investment instrument that is evidenced by a certificate if, and only if:
(a) the certificate specifies the person who is entitled to the investment instrument; and
(b) a transfer of the investment instrument may be registered on books maintained for that purpose by or on behalf of the issuer (or the certificate states that a transfer of the instrument may be so registered); and
(c) any of the following applies:
(i) the possessor has possession of the certificate;
(ii) another person (other than the grantor or the debtor) has possession of the certificate on behalf of the possessor;
(iii) the registered owner (who is not the grantor or debtor) of
the investment instrument acknowledges in writing that he, she or it has
possession of the investment instrument on behalf of the possessor.