Commonwealth Numbered Acts

PERSONAL PROPERTY SECURITIES ACT 2009 (NO. 130, 2009) - SECT 269

Scope

             (1)  This section applies if either of the following security interests is vested in the grantor under section 267:

                     (a)  a security interest of a consignor under a commercial consignment (see paragraph 12(3)(b));

                     (b)  a security interest of a lessor or bailor under a PPS lease (see paragraph 12(3)(c)).

Entitlement to damages and compensation

             (2)  The consignor, or lessor or bailor:

                     (a)  is taken to have suffered damage immediately before the event mentioned in paragraph 267(1)(a) (when the security interest was vested in the grantor); and

                     (b)  may recover an amount of compensation from the grantor equal to the greater of the following amounts:

                              (i)  the amount determined in accordance with the lease, bailment or consignment;

                             (ii)  the sum of the market value of the leased, bailed or consigned property immediately before the day referred to in paragraph 267(1)(b), and the amount of any other damage or loss resulting from the termination of the lease, bailment or consignment.

Note:          The lessor, bailor or consignor may be able to prove the amount of compensation in proceedings related to the bankruptcy or winding‑up of the grantor.