Victorian Consolidated Legislation

Chattel Securities Act 1987 - SECT 9

Extinguishing of subsequent security interests

9. Extinguishing of subsequent security interests



(1) If a purchaser purchases goods from a secured party, all security
interests which rank subsequently to the security interest of the secured
party are extinguished without prejudice to the rights of the secured parties
in respect of the interests to, or to call for, an accounting of such part of
the consideration for the purchase as exceeds the entitlement of the
first-mentioned secured party.

(2) Nothing in subsection (1) prejudices the right of a debtor or other
secured party to damages if a secured party wrongly exercises a power to sell
goods subject to a security interest held by the person.