PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 71 Priority of person who acquires chattel paper or an interest in chattel paper

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 71

  (1)   This section applies if:

  (a)   a person acquires an interest consisting of:

  (i)   chattel paper; or

  (ii)   an interest in chattel paper; and

  (b)   the interest is acquired:

  (i)   by a consensual transaction; and

  (ii)   in the ordinary course of the person's business of acquiring interests of that kind; and

  (iii)   for new value.

Note:   For rights relating to the transfer of chattel paper, see section   80.

  (2)   The interest of the person in the chattel paper has priority over the following security interests in the chattel paper:

  (a)   if the person took possession of the chattel paper without actual or constructive knowledge of a perfected security interest in the chattel paper--the perfected security interest;

  (b)   in any case--a security interest that has attached to proceeds of inventory as original collateral.

  (3)   This section applies despite sections   62 and 64.