Commonwealth Consolidated Acts

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PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 133

Disposing of collateral free of interests

  (1)   If collateral has been disposed of under section   128 (including by a secured party purchasing the collateral), a person takes the collateral as a result of the disposal free of all of the following interests in the collateral:

  (a)   the interest of the grantor;

  (b)   the security interest of the secured party who disposed of the collateral;

  (c)   all security interests in the collateral that have a lower priority than the security interest of that secured party.

Note:   If a person has a perfected security interest in the collateral that ranks higher than that of the secured party, the person retains a security interest in the collateral.

  (2)   Subsection   (1) applies in relation to a disposal of collateral (other than a disposal by a secured party purchasing the collateral) even if the requirements of this Chapter   have not been complied with.


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