Commonwealth Numbered Acts

PERSONAL PROPERTY SECURITIES ACT 2009 (NO. 130, 2009) - SECT 239

Main rules

             (1)  The validity of a security interest in intangible property is governed by the law of the jurisdiction (other than the law relating to conflict of laws) in which the grantor is located when the security interest attaches, under that law, to the property.

             (2)  At a particular time, the perfection, and the effect of perfection or non‑perfection, of a security interest in intangible property is governed by the law of the jurisdiction (other than the law relating to conflict of laws) in which the grantor is located at that time.

Intellectual property

             (3)  Despite subsections (1) and (2), a security interest in intellectual property or an intellectual property licence is governed by the law of the jurisdiction (other than the law relating to conflict of laws) by or under which the intellectual property or licence is granted.

ADI accounts

             (4)  Despite subsections (1) and (2), a security interest in an ADI account is governed by the law of the jurisdiction (other than the law relating to conflict of laws) that governs the ADI account.

             (5)  However, the parties to a security agreement may agree in writing that the law of another jurisdiction governs the security interest in the ADI account if applying the law of that other jurisdiction would not be manifestly contrary to public policy.

Rights evidenced by letters of credit not covered

             (6)  This section does not apply to a right evidenced by a letter of credit that states that the letter of credit must be presented on claiming payment or requiring the performance of an obligation.

Note 1:       For the priority of a security interest in an account if there is no foreign register, see section 77.

Note 2:       For the location of bodies corporate, bodies politic and individuals, see section 235.

Note 3:       Under section 237, the parties to a security agreement may expressly provide for the law of the Commonwealth to apply instead.

Note 4:       Rights mentioned in subsection (6) are dealt with in the same way as financial property by section 240.