Commonwealth Numbered Acts

PERSONAL PROPERTY SECURITIES ACT 2009 (NO. 130, 2009) - SECT 44

Main rule

             (1)  A buyer or lessee of personal property, for new value, takes the personal property free of a security interest in the property if:

                     (a)  the regulations provide that personal property of that kind may, or must, be described by serial number in a registration; and

                     (b)  searching the register, immediately before the time of the sale or lease, by reference only to the serial number of the property, would not disclose a registration that perfected the security interest.

Exceptions

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

                     (a)  the buyer or lessee holds the personal property:

                              (i)  as inventory; or

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

                     (b)  at the time covered by subsection (3), the buyer or lessee has actual knowledge that the sale or lease constitutes a breach of the security agreement that provides for the security interest, unless the personal property is of a kind prescribed by the regulations for the purposes of this subsection.

             (3)  The time covered by this subsection is:

                     (a)  if the personal property is bought or leased with the intention of using it predominantly for personal, domestic or household purposes--the time new value is first given for the sale or lease; or

                     (b)  in any other case--the time of sale or of entry into agreement for the lease.