PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 41 Guide to this Part
PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 41
Guide to this PartThis Part is about taking personal property free of security interests.
Rules are set out for when personal property may be bought or leased free of a security interest in relation to the following:
(a) unperfected security interests;
(b) serial number defects;
(c) motor vehicles;
(d) taking in the ordinary course of business;
(e) personal, domestic or household property;
(f) currency;
(g) taking investment instruments or intermediated securities in the ordinary course of trading;
(h) investment instruments;
(i) intermediated securities;
(j) temporarily perfected security interests.
If a transferee takes personal property (or an accession) free of a security
interest by the operation of this Part, the secured party's rights are
subrogated to the rights of the transferor. Payment of the purchase price
before the transferee receives notice of subrogation discharges the
transferee's obligation (to the extent of the payment).