Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 45

Taking motor vehicles free of security interest

Incorrect or missing serial number

             (1)  A buyer or lessee, for new value, of a motor vehicle of a kind prescribed by the regulations for the purpose of this section, takes the motor vehicle free of a security interest in the motor vehicle if:

                     (a)  the regulations provide that motor vehicles of that kind may, or must, be described by serial number; and

                     (b)  there is a time during the period between the start of the previous day and the time of the sale or lease by reference to which a search of the register (by reference otherwise only to the serial number of the motor vehicle) would not disclose a registration that perfected the security interest; and

                     (c)  the seller or lessor is:

                              (i)  the person who granted the security interest; or

                             (ii)  if the person who granted the security interest has lost the right to possess the motor vehicle, or is estopped from asserting an interest in the motor vehicle--another person who is in possession of the motor vehicle.

             (2)  Subsection (1) does not apply if:

                     (a)  the secured party is in possession of the motor vehicle immediately before the time of the sale or lease; or

                     (b)  the motor vehicle is bought at a sale held by or on behalf of an execution creditor; or

                     (c)  the buyer or lessee holds the motor vehicle:

                              (i)  as inventory; or

                             (ii)  on behalf of a person who would hold the motor vehicle as inventory; or

                     (d)  the buyer or lessee buys or leases the motor vehicle with actual or constructive knowledge of the security interest.

Taking from prescribed persons

             (3)  A buyer or lessee, for new value, of a motor vehicle of a kind prescribed by the regulations for the purpose of this section takes the motor vehicle free of a security interest in the motor vehicle if:

                     (a)  the regulations provide that motor vehicles of that kind may, or must, be described by serial number; and

                     (b)  the seller or lessor is in a class of persons prescribed by the regulations for the purposes of this subsection.

             (4)  Subsection (3) does not apply if:

                     (a)  the secured party is in possession of the motor vehicle immediately before the time of the sale or lease; or

                     (b)  the motor vehicle is bought at a sale held by or on behalf of an execution creditor; or

                     (c)  the buyer or lessee holds the motor vehicle:

                              (i)  as inventory; or

                             (ii)  on behalf of a person who would hold the motor vehicle as inventory; or

                     (d)  the buyer or lessee buys or leases the motor vehicle with actual or constructive knowledge that the sale or lease constitutes a breach of the security agreement that provides for the security interest.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback