Commonwealth Numbered Acts

PERSONAL PROPERTY SECURITIES ACT 2009 (NO. 130, 2009) - SECT 70

             (1)   This section applies if, by a consensual transaction, a person acquires an interest consisting of:

                     (a)  a negotiable instrument; or

                     (b)  an interest in a negotiable instrument.

             (2)  The interest of the person in the negotiable instrument has priority over a perfected security interest in the negotiable instrument if:

                     ( a)  the person gave value for the interest; and

                     (b)  the person:

                              (i)  in the case of a person who acquired the interest in the ordinary course of the person's business of acquiring interests of that kind--acquired the interest without actual or constructive knowledge that the acquisition constitutes a breach of the security agreement that provides for the security interest; or

                             (ii)  otherwise--acquired the interest without actual or constructive knowledge of the security interest; and

                     (c)  the person took possession or control of the negotiable instrument.