Commonwealth Numbered Acts

PERSONAL PROPERTY SECURITIES ACT 2009 (NO. 130, 2009) - SECT 62

Scope

             (1)  This section sets out when a perfected purchase money security interest that is granted by a grantor in collateral or its proceeds has priority over a perfected security interest that is granted by the same grantor in the same collateral, but that is not a purchase money security interest.

Note:          This section is subject to section 57 (perfection by control).

Inventory

             (2)  The purchase money security interest has priority if:

                     (a)  the purchase money security interest is in inventory or its proceeds; and

                     (b)  the purchase money security interest is perfected by registration at the time:

                              (i)  for inventory that is goods--the grantor, or another person at the request of the grantor, obtains possession of the inventory; or

                             (ii)  for any other kind of inventory--the purchase money security interest attaches to the inventory; and

                     (c)  the registration that perfects the purchase money security interest states, in accordance with item 7 of the table in section 153, that the interest is a purchase money security interest.

Note:          This subsection is subject to sections 64 (non‑purchase money security interest in accounts) and 71 (chattel paper).

Personal property other than inventory

             (3)  The purchase money security interest has priority if:

                     (a)  the interest is in personal property, or its proceeds, other than inventory; and

                     (b)  the purchase money security interest is perfected by registration before the end of 10 business days after whichever of the following days applies:

                              (i)  for goods--the day the grantor, or another person at the request of the grantor, obtains possession of the property;

                             (ii)  for any other property--the day the interest attaches to the property; and

                     (c)  the registration that perfects the purchase money security interest states, in accordance with item 7 of the table in section 153, that the interest is a purchase money security interest.

Note:          The period mentioned in paragraph (b) may be extended by a court under section 293.