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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Chattel Securities (Amendment) Act 1998
Act No.
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 2
3. Principal Act 2
PART 2--AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF VICTORIAN CIVIL AND
ADMINISTRATIVE TRIBUNAL 3
4. Applications to Tribunal 3
PART 3--AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF NATIONAL VEHICLE SECURITY
ENQUIRY REGISTER 4
5. Definitions 4
6. Choice of law 6
7. Extinguishment of registered security interest 6
8. Purchase for value in good faith 7
9. Repairer's lien takes priority over registered security interest 8
10. Registrable goods 8
11. Compensation for extinguishment of registered security interest 9
NOTES 10
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532126B.I1-20/10/98
PARLIAMENT OF VICTORIA
A BILL
to amend the Chattel Securities Act 1987 as a consequence of the
establishment of the national vehicle security enquiry register and the
Victorian Civil and Administrative Tribunal and for other purposes.
Chattel Securities (Amendment) Act
1998
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The main purpose of this Act is to amend the
Chattel Securities Act 1987 as a consequence of
5 the establishment of the national vehicle security
enquiry register and the Victorian Civil and
Administrative Tribunal.
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Chattel Securities (Amendment) Act 1998
s. 2
Act No.
2. Commencement
(1) This Part and Part 2 come into operation on the
day on which this Act receives the Royal Assent.
(2) Subject to sub-section (3), the remaining
5 provisions of this Act come into operation on a
day or days to be proclaimed.
(3) If a provision referred to in sub-section (2) does
not come into operation before 1 July 1999, it
comes into operation on that day.
No. 15/1987.
10 3. Principal Act
Reprint No. 1
In this Act the Chattel Securities Act 1987 is
as at
19 September
called the Principal Act.
1996. Further
amended by
No. 46/1998.
_______________
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Chattel Securities (Amendment) Act 1998
s. 4
Act No.
PART 2--AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF VICTORIAN CIVIL AND
ADMINISTRATIVE TRIBUNAL
4. Applications to Tribunal
5 In the Principal Act--
(a) in section 3(1), for the definition of
"Tribunal" substitute--
' "Tribunal" means Victorian Civil and
Administrative Tribunal established by
10 the Victorian Civil and
Administrative Tribunal Act 1998;';
(b) in section 25--
(i) in sub-sections (1) and (1A) for "is
entitled to make application to a
15 Tribunal" substitute "may apply to the
Tribunal";
(ii) in sub-section (5) for "a Tribunal"
substitute "the Tribunal";
(c) in section 26--
20 (i) in sub-section (1) for "is entitled to
make application to a Tribunal"
substitute "may apply to the Tribunal";
(ii) in sub-section (1A) for "is entitled to
apply to a Tribunal" substitute "may
25 apply to the Tribunal";
(iii) in sub-section (5) for "a Tribunal"
substitute "the Tribunal".
_______________
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Chattel Securities (Amendment) Act 1998
s. 5
Act No.
PART 3--AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF NATIONAL VEHICLE SECURITY
ENQUIRY REGISTER
5. Definitions
5 In section 3(1) of the Principal Act--
(a) insert the following definitions--
' "agricultural implement" means a vehicle
without its own motive power, built to
perform agricultural tasks;
10 "agricultural machine" means a machine
with its own motive power, built to
perform agricultural tasks;
"agricultural tasks" includes the
cultivation of land, the growing and
15 harvesting of crops and the rearing of
livestock;
"repairer's lien" means a lien on goods in
the possession of a person as security
for payment for services or materials
20 furnished in respect of those goods by
that person in the ordinary course of
business;';
(b) for the definition of "lease" substitute--
' "lease" means a contract for the hiring of
25 goods or for the grant of a licence to
use goods and a contract for the hiring
or bailment of goods for display
purposes but does not include--
(a) a hire-purchase agreement; or
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Chattel Securities (Amendment) Act 1998
s. 5
Act No.
(b) a contract for the hiring of or for
the grant of a licence to use a
vehicle within the meaning of the
Road Safety Act 1986 of which
5 the lessor is the registered
operator or an applicant for
registration as the registered
operator under that Act or a
corresponding Act of the
10 Commonwealth or of another
State or of a Territory; or
(c) a contract for the hiring of or for
the grant of a licence to use goods
under which the lessor does not
15 effectively transfer from the lessor
to the lessee substantially all the
risks and benefits incident to
ownership of the goods;';
(c) for the definition of "purchaser"
20 substitute--
' "purchaser" means a person who
purchases goods but excludes--
(a) a secured party not being a lessor,
owner or other supplier of the
25 goods under a lease, hire-purchase
agreement or other contract for the
supply of goods; and
(b) in relation to unregistrable goods,
a dealer;';
30 (d) in the definition of "security interest" omit
", but does not include a possessory lien or
pledge".
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Chattel Securities (Amendment) Act 1998
s. 6
Act No.
6. Choice of law
In section 4(1) of the Principal Act paragraph (a)
is repealed.
7. Extinguishment of registered security interest
5 (1) After section 7(1) of the Principal Act insert--
"(1A) Subject to section 8, if--
(a) a secured party has a registered security
interest in goods but is not in
possession of the goods; and
10 (b) a purchaser purchases or purports to
purchase an interest in the goods
(otherwise than at a sale in pursuance
of a process of execution issued by or
on behalf of a judgment creditor) for
15 value in good faith and without notice
when the purchase price is paid (or, if
the purchase price is not paid at one
time, when the first part of the purchase
price is paid) of the security interest
20 from a supplier being--
(i) the debtor; or
(ii) another person who is in
possession of the goods in
circumstances where the debtor
25 has lost the right to possession of
the goods or is estopped from
asserting an interest in the goods
against the purchaser; and
(c) on the day of the purchase or purported
30 purchase or on the preceding day a
certificate was issued under section 24
in respect of the goods; and
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Act No.
(d) the certificate did not contain the
particulars of an entry in the register
relating to the goods at the time of the
issue of the certificate--
5 the security interest of the secured party is
extinguished1.
(1B) A reference in sub-section (1A)(c) to the day
of the purchase or purported purchase is a
reference to the day on which the purchase
10 price is paid or, if the purchase price is not
paid on one day, the day on which the first
part of the purchase price is paid.".
(2) In section 7 of the Principal Act--
(a) in sub-section (4) after "sub-section (1)"
15 insert ", (1A), (1B)";
(b) in sub-sections (7) and (9) after "sub-section
(1)" insert ", (1A)".
8. Purchase for value in good faith
(1) In section 8(1) of the Principal Act--
20 (a) in paragraph (b) after "other" insert "within
the meaning of section 50 of the
Corporations Law";
(b) in paragraph (c) for "Companies (Victoria)
Code" substitute "Corporations Law".
25 (2) In section 8 of the Principal Act for sub-section
(2) substitute--
"(2) For the purposes of section 7, if--
(a) a purchaser of goods is a lessor, owner
or the supplier of the goods under a
30 lease, hire-purchase agreement or other
contract for the supply of the goods or
is a person who purchases goods with
the intention of entering into such a
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Chattel Securities (Amendment) Act 1998
s. 9
Act No.
lease, hire-purchase agreement or other
contract; and
(b) the lessee, hirer or buyer under such a
lease, hire-purchase agreement or other
5 contract has participated in negotiations
with the supplier of the goods--
the purchase or purported purchase of the
goods by the purchaser is not a purchase or
purported purchase in good faith and without
10 notice of a security interest if the lessee,
hirer or buyer has not acted in good faith and
without notice of the security interest.".
9. Repairer's lien takes priority over registered security
interest
15 (1) In section 10(2) of the Principal Act for
"Companies (Victoria) Code" substitute
"Corporations Law".
(2) After section 10(3) of the Principal Act insert--
"(4) A repairer's lien on goods, whether or not
20 registered under Part 3, ranks in priority to
any registered security interest in respect of
those goods irrespective of the date and time
of the registration of that registered security
interest.".
25 10. Registrable goods
In section 13(1) of the Principal Act for
paragraphs (a) and (b) substitute--
"(a) motor vehicles within the meaning of the
Road Safety Act 1986 that are or have been
30 registered or eligible for registration under
that Act; and
(b) trailers within the meaning of the Road
Safety Act 1986 that are or have been
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Chattel Securities (Amendment) Act 1998
s. 11
Act No.
registered or eligible for registration under
that Act; and
(ba) agricultural machines and agricultural
implements; and".
5 11. Compensation for extinguishment of registered
security interest
(1) After section 25(1A) of the Principal Act insert--
"(1B) If--
(a) a person suffers loss or damage because
10 a registered security interest of which
the person is the holder is extinguished
by the operation of section 7(1A); and
(b) the security interest was registered
before the certificate referred to in
15 section 7(1A)(c) was issued in respect
of the goods the subject of the security
interest--
the person may apply to the Tribunal for an
order for the payment of compensation to the
20 person.".
(2) In the Principal Act--
(a) in section 25(2) for "or (1A)" substitute
", (1A) or (1B)";
(b) section 26 is repealed.
25 (3) After section 30(2) of the Principal Act insert--
"(3) Despite its repeal, section 26 as in force
immediately before the commencement of
section 11(2)(b) of the Chattel Securities
(Amendment) Act 1998 continues to apply
30 with respect to any loss or damage arising
from or in connection with a purchase that
took place before that commencement.".
9
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Chattel Securities (Amendment) Act 1998
Notes
Act No.
NOTES
1
S. 7(1A): The secured party may apply for compensation under section
25(1B) if the security interest was registered before the certificate was
issued under section 24.
By Authority. Government Printer for the State of Victoria.
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Chattel Securities (Amendment) Act 1998
Act No.
11
532126B.I1-20/10/98
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