PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 79 Transfer of collateral despite prohibition in security agreement

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 79

  (1)   If collateral would be able to be transferred (including by sale, by creating a security interest or under proceedings to enforce a judgment) but for a provision in a security agreement prohibiting the transfer or declaring the transfer to be a default, the collateral may be transferred, despite the provision:

  (a)   by consent between the grantor and the transferee; or

  (b)   by operation of law.

Note:   See section   32 in relation to security interests in proceeds that arise as a result of a transfer.

  (2)   A transfer mentioned in subsection   (1) does not prejudice the rights of the secured party under the security agreement or otherwise, including the right to treat a prohibited transfer as an act of default.