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PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 267A Vesting in grantor of security interest that attaches after winding up etc.

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 267A

Vesting in grantor of security interest that attaches after winding up etc.

Vesting of security interest

  (1)   A security interest vests in the grantor when it attaches to the collateral if:

  (a)   paragraph   267(1)(a) applies in relation to the grantor; and

  (b)   before the time (the critical time ) mentioned in paragraph   267(1)(b), the grantor enters into a security agreement with the secured party that provides for the secured party to take a security interest in collateral from the grantor; and

  (c)   at the critical time:

  (i)   the security interest has not attached to the collateral; and

  (ii)   there is no registration that would perfect the security interest when it attaches to the collateral; and

  (d)   after the critical time, the security interest attaches to the collateral; and

  (e)   at the time of attachment:

  (i)   the security interest is unperfected; or

  (ii)   if the security interest is perfected, it is perfected only by a registration for which the registration time is after the critical time.

Note:   This section does not apply to certain security interests (see section   268).

Property acquired for new value without knowledge

  (2)   Subsection   (1) does not affect the title of a person to personal property if:

  (a)   the person acquires the personal property for new value from a secured party, from a person on behalf of a secured party, or from a receiver in the exercise of powers:

  (i)   conferred by the security agreement providing for the security interest; or

  (ii)   implied by the general law; and

  (b)   at the time the person acquires the property, the person has no actual or constructive knowledge of the following (as the case requires):

  (i)   the filing of an application for an order to wind up the company;

  (ii)   the passing of a resolution to wind up the company;

  (iii)   the appointment of an administrator of the company under section   436A, 436B or 436C of the Corporations Act 2001 ;

  (iv)   the execution of a deed of company arrangement by the company.

Note:   Section   296 deals with the onus of proving matters under this subsection.