PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 35 Returned collateral--from bailee

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 35

Security interest is temporarily perfected

  (1)   A security interest in goods that is perfected by possession of the goods or a negotiable document of title to the goods under subsection   22(1) is temporarily perfected for the period covered by subsection   (2) of this section if possession of the goods or document is given to the grantor or the debtor at a particular time (the action time ) for the purpose of any of the following actions in relation to the goods:

  (a)   sale;

  (b)   exchange;

  (c)   any other action in preparation for sale or exchange, including (but not limited to) the following:

  (i)   loading;

  (ii)   unloading;

  (iii)   storing;

  (iv)   shipping;

  (v)   manufacturing;

  (vi)   processing;

  (vii)   packaging.

Note:   Subsection   22(1) provides for the perfection of a security interest in goods possessed by a bailee.

  (2)   This subsection covers the period starting at the action time and ending at the end of 5 business days after the day the action time occurs.

Security interest becomes unperfected after 5 business days

  (3)   However, the security interest in the goods or document becomes unperfected at the end of the period covered by subsection   (2), unless the security interest is perfected otherwise than under subsection   (1) before the end of the period.