Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 237

  (1)   Despite sections   238, subsections   239(1) and (2) and section   240, the law of the Commonwealth (other than the law relating to conflict of laws) governs a security interest if:

  (a)   the grantor is an Australian entity at the time the security interest attaches to the collateral; and

  (b)   the security agreement that provides for the security interest expressly provides that the law of the Commonwealth, or that law as it applies in a particular State or Territory, governs the security interest.

  (2)   However, a security agreement may not provide for the law of the Commonwealth, or that law as it applies in a particular State or Territory, to govern a security interest in the following intangible property:

  (a)   an account;

  (b)   a transfer of:

  (i)   an account; or

  (ii)   chattel paper;

  (c)   intellectual property or an intellectual property licence.

Note 1:   For the law that governs security interests in such kinds of intangible property, see section   239.

Note 2:   The parties to a security agreement may provide that the law of the Commonwealth governs a security interest in an ADI account if it would not be manifestly contrary to public policy (see subsection   239(5)).