Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 115

Collateral not used predominantly for personal, domestic or household purposes

  (1)   The parties to a security agreement that provides for a security interest in collateral that is not used predominantly for personal, domestic or household purposes may contract out of the following provisions in relation to the collateral (to the extent, if any, mentioned):

  (a)   section   95 (notice of removal of accession), to the extent that it requires the secured party to give a notice to the grantor;

  (b)   section   96 (when a person with an interest in the whole may retain an accession);

  (c)   section   117 (obligations secured by interests in personal property and land);

  (d)   section   118 (enforcing security interests in accordance with land law decisions), to the extent that it allows a secured party to give a notice to the grantor;

  (e)   section   120 (enforcement of liquid assets);

  (f)   subsection   121(4) (enforcement of liquid assets--notice to grantor);

  (g)   section   123 (right to seize collateral);

  (h)   section   125 (obligation to dispose of or retain collateral);

  (i)   section   126 (apparent possession);

  (j)   section   128 (secured party may dispose of collateral);

  (k)   section   129 (disposal by purchase);

  (l)   section   130 (notice of disposal), to the extent that it requires the secured party to give a notice to the grantor;

  (m)   paragraph   132(3)(d) (contents of statement of account after disposal);

  (n)   subsection   132(4) (statement of account if no disposal);

  (o)   subsection   134(1) (retention of collateral);

  (p)   section   135 (notice of retention);

  (pa)   Division   6 of Part   4.3 (seizure and disposal or retention of crops and livestock), or any particular provision of that Division;

  (q)   section   142 (redemption of collateral);

  (r)   section   143 (reinstatement of security agreement).

  (2)   However, if parties to a security agreement contract out of a provision, the provision continues to the extent that it gives rights to, and imposes obligations in relation to, persons who are not parties to the security agreement.

Example:   Parties to a security agreement contract out of the right to seize property under section   123. A secured party who is not a party to the security agreement may seize the property under section   123.

  (3)   Despite subsection   (2), if parties to a security agreement contract out of section   142 (redemption of collateral), the provision does not give any person (whether or not the person is a party to the agreement) a right to redeem collateral under section   142.

Contracts between persons other than the grantor

  (5)   A person (including a secured party, but not including the grantor) who is entitled to receive a notice from a secured party under one or more provisions in this Chapter   may contract with the secured party out of one or more of those provisions.

  (6)   2 secured parties may contract out of the right of one of the secured parties to receive an amount under subsection   127(6) (payment of enforcing party's expenses) from the other secured party.

Contracting out in relation to controllers (other than receivers etc.)

  (7)   Subject to subsections   (2), (3), (5) and (6), the parties to a security agreement may contract out of the application under subsection   116(2) of any provision of Part   4.3 (seizure and disposal or retention of collateral) in relation to property.

Note:   Subsection   116(2) provides for the application of this Chapter   while a person is a controller of the property other than a receiver, or a receiver and manager, of the property within the meaning of the Corporations Act 2001 .