Commonwealth Consolidated Acts

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PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 121

Enforcement of security interests in liquid assets--notice to higher priority parties and grantor

Notice to higher priority parties

  (1)   Unless section   144 applies, a secured party (the enforcing party ) who proposes to take action under subsection   120(2) in relation to a security interest in collateral must give a written notice to any other secured party (a higher priority party ) with a security interest in the collateral that has a higher priority.

  (2)   The notice must:

  (a)   contain the name of the secured party giving the notice; and

  (b)   contain a description of the collateral; and

  (c)   state that the enforcing party proposes to take action under paragraph   120(2)(a) or (b), as the case requires; and

  (d)   state the address to which a notice may be given under subsection   (3); and

  (e)   be given to each higher priority party:

  (i)   at least 10 business days before the day the action is to be taken; or

  (ii)   if a higher priority party has given a written notice to the enforcing party specifying a shorter period to apply for the purposes of this subsection--before the end of that period.

Note:   The period mentioned in paragraph   (e) may be extended by a court under section   293.

  (3)   A higher priority party who is given a notice under subsection   (1) may, before any action is taken under subsection   120(2), give a written notice to the enforcing party informing the enforcing party of the higher priority party's proposal to take action under that subsection. If the higher priority party gives such a notice, the enforcing party is not entitled to take action under that subsection.

Notice to grantor

  (4)   A secured party must give a written notice to the grantor of any action the secured party takes in accordance with subsection   120(2).

  (5)   The notice under subsection   (4) must be given:

  (a)   before the end of 5 business days after the day the action is taken; or

  (b)   if the grantor has given a written notice to the secured party specifying a shorter period to apply for the purposes of this subsection--before the end of that period.

Note:   The period mentioned in paragraph   (a) may be extended by a court under section   293.


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