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PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 263 When this Act prevails--formal requirements relating to agreements

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 263

When this Act prevails--formal requirements relating to agreements

Scope

  (1)   This section applies if a law (the applicable law ) of a State or Territory:

  (a)   relates (whether expressly or by implication) to a security agreement for a security interest in collateral, or for an assignment (however described) of a security interest in collateral; and

  (b)   has the effect of requiring the security agreement:

  (i)   to be in a particular form; or

  (ii)   to be witnessed or executed in a particular way; and

  (c)   is prescribed by regulations made for the purposes of this section.

Example:   A law of a State or Territory requires a security agreement to be in a particular form if the law requires the instrument evidencing the agreement to use a particular form of words, or to be executed on paper of a particular sort.

  (2)   An assignment of a security interest mentioned in this section includes (but is not limited to) the following, however described in the applicable law:

  (a)   the transfer of the security interest;

  (b)   the giving of the security interest;

  (c)   the devolution of the security interest from a deceased person to another person upon the death of the deceased.

Failure to comply with formal requirement under applicable law

  (3)   Without limiting section   261 or 262, a failure to comply with the requirement under the applicable law does not:

  (a)   affect the validity or enforceability of the security agreement; or

  (b)   affect the validity, priority or enforceability of the security interest; or

  (c)   affect the validity of the assignment (if relevant); or

  (d)   otherwise limit the effect of the security agreement, the security interest or the assignment (if relevant).

Note:   In other respects this Act is not intended to exclude or limit the concurrent operation of the applicable law (see section   254).