Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 33

Perfection by reference to perfection of security interest in original collateral

  (1)   A security interest in proceeds is perfected if the security interest in the original collateral is perfected by a registration that:

  (a)   describes the proceeds, if the description complies with any regulations made for the purposes of paragraph   (d) of item   4 of the table in section   153 (financing statements with respect to security interests); or

  (b)   covers the original collateral, if the proceeds are of a kind that are within the description of the original collateral; or

  (c)   covers the original collateral, if the proceeds consist of currency, cheques or an ADI account, or a right to an insurance payment or any other payment as indemnity or compensation for loss or damage to the collateral or proceeds.

Temporary perfection in other situations

  (2)   If a security interest in original collateral is perfected, but a security interest in the proceeds is not perfected under subsection   (1), the security interest in the proceeds is temporarily perfected for the period starting at the time the security interest in the original collateral attaches to the proceeds and ending at the end of 5 business days afterwards.

  (3)   However, the security interest in the proceeds under subsection   (2) becomes unperfected at the end of the period mentioned in that subsection, unless the security interest in the proceeds is perfected otherwise than under the subsection before the end of the period.