Commonwealth Consolidated Acts

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PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 99

Continuation of security interests in goods that become processed or commingled

  (1)   A security interest in goods that subsequently become part of a product or mass continues in the product or mass if the goods are so manufactured, processed, assembled or commingled that their identity is lost in the product or mass.

Note:   A person might take an interest in the product or mass free of the security interest because of the operation of another provision of this Act.

  (2)   Without limiting subsection   (1), the identity of goods that are manufactured, processed, assembled or commingled is lost in a product or mass if it is not commercially practical to restore the goods to their original state.



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