Chapter 29
Summary of Key Changes to the Previous Law
- 29.1 Summary of key changes to the previous law
- 29.2 Security agreements are not available from the PPS Register
- 29.3 Super-priority security interests – PMSIs and security interests perfected by control
- 29.4 Secured parties can perfect to defeat existing security interests of which they have knowledge – knowledge is generally not relevant to priority disputes between security interests
- 29.5 45 day window to register security interests changes to 20 business days
- 29.6 Security interests over ADI accounts
- 29.7 Following collateral upon transfers
- 29.8 Extinguishment rules upon transfers of collateral
- 29.9 Security interests automatically attach to proceeds generated upon disposals of original collateral
- 29.10 Restrictive covenants against the sale of collateral or the grant of further security
- 29.11 Receivables financing
- 29.12 Tacking of further advances is permitted
- 29.13 Conflicts of laws rules
- 29 14 Serial numbered property
- 29.15 15 business day “silent equipment PMSI” risk
- 29.16 Receivers, controllers or secured parties can sell leased or retention of title property if the lease or retention of title transaction is unperfected, or trumped for priority
- 29.17 Circulating security interests (floating charges) attach immediately to after-acquired property without appropriation
29.15 15 business day “silent equipment PMSI” risk
Security interests are susceptible to being defeated by “silent” equipment PMSIs for up to 15 business days.
There is a 15 business day “silent equipment PMSI” risk that arises because equipment PMSIs have 15 business days to register. Security interests may be defeated by "latent" equipment PMSIs that do not show on the PPS Register at the time of search of the PPS Register, but emerge on the PPS Register within 15 business days of grant.
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