New South Wales Consolidated Acts

REGISTRATION OF INTERESTS IN GOODS ACT 1986 - SECT 9

9 Purchase of goods that are subject to registrable interest

(1) The Minister may, by order published in the Gazette, notify that, on and from a specified day, this section has effect in relation to prescribed goods of a specified class.

Note: See Gazette No 57 of 12.5.1995, p 2358 and No 67 of 7.6.1996, p 2920.

(1A) This section applies to a purchase of goods only if the goods are situated in New South Wales at the time of the purchase.

(2) Where goods of a class specified in an order in force under subsection (1) are the subject of a registrable interest (whether the registrable interest arose before, or arises on or after, the day specified in the order) and the goods are purchased as provided by subsection (3) or (4):

(a) the property (if any) in the goods of the creditor who has the registrable interest is divested from the creditor and vested in the purchaser, and

(b) the purchaser acquires the goods freed and discharged from the registrable interest.

(3) Goods are purchased as provided by this subsection if the goods are purchased:

(a) by a person who is not a dealer in the goods from a dealer in the goods,

(b) except as provided by paragraph (c)-in good faith and for value, and

(c) with or without notice of the registrable interest.

(4) Goods are purchased as provided by this subsection if the goods are purchased otherwise than as referred to in subsection (3) (a):

(a) from the debtor under the registrable interest to which the goods are subject,

(b) in good faith and for value, and

(c) without notice, at the time of payment of the purchase price, of the registrable interest.

(5) In any civil proceedings, the onus of proving that goods were purchased as provided by subsection (3) or (4) lies on the person seeking to establish that the goods were so purchased. The standard of proof is proof on the balance of probabilities, except as provided by subsection (6).

(6) The standard of proof is proof beyond reasonable doubt in each of the following cases:

(a) if the purchaser is a member of the same household as the seller,

(b) if the purchaser and the seller are bodies corporate that are related to each other within the meaning of section 50 of the Corporations Act 2001 of the Commonwealth,

(c) if either the purchaser or the seller is a body corporate and the other a natural person who (within the meaning of the Corporations Act 2001 of the Commonwealth) is a director or officer of the body corporate.

(6A) Goods the subject of a registrable interest are not purchased as provided by subsection (3) or (4) if:

(a) the purchaser lets, hires or supplies the goods to a person under a lease, hire-purchase agreement or other contract for the supply of the goods or purchased the goods with the intention of entering into such a lease, hire-purchase agreement or other contract, and

(b) the lessee, hirer or buyer of the goods under that lease, hire-purchase agreement or other contract has failed to act in good faith and had notice at the time of payment of the purchase price of the registrable interest to which the goods are subject.

(7) In subsection (4), a reference to a purchase from the debtor under a registrable interest includes a reference to a purchase from a person other than the debtor who is in possession of the goods in circumstances where the debtor’s right to possession of the goods has been lost or the debtor is estopped from asserting that right against the purchaser.