Victorian Consolidated Legislation

Chattel Securities Act 1987 - SECT 8

Purchase for value in good faith

8. Purchase for value in good faith



(1) For the purposes of section 7, a purchase or purported purchase of goods
by a purchaser is not a purchase or purported purchase for value in good faith
and without notice of a security interest if-

   (a)  the purchaser is a member of the same household as is the supplier or
        purported supplier of the goods; or

   (b)  the purchaser and the supplier or purported supplier of the goods are
        bodies corporate that are related to each other within the meaning of
        section 50 of the Corporations Act; or







   (c)  one of the purchaser and the supplier or purported supplier of the
        goods is a body corporate and the other a natural person who, within
        the meaning of the Corporations Act, is a director or officer of the
        body corporate-

unless the person asserting that it is such a purchase or purported purchase
proves beyond reasonable doubt that it is such a purchase or purported
purchase.

(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 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 lease, hire-purchase agreement or
        other contract; and

   (b)  the lessee, hirer or buyer under such a lease, hire-purchase agreement
        or other 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 notice of a security
interest if the lessee, hirer or buyer has not acted in good faith and without
notice of the security interest.