Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies if a law (the applicable law ) of a State or Territory:
(a) relates (whether expressly or by implication) to a security agreement for a security interest in collateral, or for an assignment (however described) of a security interest in collateral; and
(b) has the effect of requiring the security agreement:
(i) to be in a particular form; or
(ii) to be witnessed or executed in a particular way; and
(c) is prescribed by regulations made for the purposes of this section.
Example: A law of a State or Territory requires a security agreement to be in a particular form if the law requires the instrument evidencing the agreement to use a particular form of words, or to be executed on paper of a particular sort.
(2) An assignment of a security interest mentioned in this section includes (but is not limited to) the following, however described in the applicable law:
(a) the transfer of the security interest;
(b) the giving of the security interest;
(c) the devolution of the security interest from a deceased person to another person upon the death of the deceased.
Failure to comply with formal requirement under applicable law
(3) Without limiting section 261 or 262, a failure to comply with the requirement under the applicable law does not:
(a) affect the validity or enforceability of the security agreement; or
(b) affect the validity, priority or enforceability of the security interest; or
(c) affect the validity of the assignment (if relevant); or
(d) otherwise limit the effect of the security agreement, the security interest or the assignment (if relevant).
Note: In other respects this Act is not intended to exclude or limit the concurrent operation of the applicable law (see section 254).