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PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 321 Attachment rule

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 321

Attachment rule

    For the purposes of subparagraph   21(1)(b)(i) and section   55, a transitional security interest in collateral is taken to have attached to the collateral immediately before the registration commencement time, whether the security interest arises before, at or after the registration commencement time.

Note 1:   Subparagraph   21(1)(b)(i) provides that unless a security interest in collateral is perfected by force of this Act, the security interest must have attached to the collateral in order to be perfected.

Note 2:   Section   55 provides for the default rules for determining priority between security interests in the same collateral. In some cases, these rules depend on when a security interest attaches. For example, the priority between 2 unperfected security interests is generally determined by their order of attachment (see subsection   55(2)).

However, 2 unperfected transitional security interests have the priority they would have had between themselves if this Act had not been enacted (see section   323).

Note 3:   See section   320 for a general summary of priority rules as they affect transitional security interests.