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
29.7 Following collateral upon transfers
Under the PPSA security interests continue in collateral upon transfers of collateral if the transfer gives rise to proceeds1, unless the secured party has expressly or impliedly consented to the transfer, or the security interest is extinguished for the benefit of a buyer or lessee under one of the ten (10) extinguishment rules (discussed next).
The PPSA expressly validates the right of a secured party to follow collateral into the hands of a buyer or lessee if a security interest over transferred collateral is not extinguished by the transfer. This was a very difficult area of law before commencement of the PPSA. See Chapter 14 (Following collateral and value) for discussion.
Notes:
1 PPSA section 32(1)(a)
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