2,734
edits
Difference between revisions of "Conditional Sales Contracts and Security Agreements (11:VI)"
Jump to navigation
Jump to search
Conditional Sales Contracts and Security Agreements (11:VI) (view source)
Revision as of 21:03, 4 October 2022
, 21:03, 4 October 2022→D. Third Party Purchaser’s Rights
| Line 55: | Line 55: | ||
Security is perfected when the requirements under the ''PPSA'' are met and has attached, meaning that the collateral has come into existence (i.e. if security has not attached, then there is no collateral). Under s 12, a security interest attaches when: | Security is perfected when the requirements under the ''PPSA'' are met and has attached, meaning that the collateral has come into existence (i.e. if security has not attached, then there is no collateral). Under s 12, a security interest attaches when: | ||
:a) Value is given; | :(a) Value is given; | ||
:b) The debtor has rights in the collateral; and | :(b) The debtor has rights in the collateral; and | ||
:c) There is an enforceable security interest (see s 10 for writing requirements for security agreements) unless the parties specifically agree to postpone the time of attachment, in which case the security interest attaches at that specified date. | :(c) There is an enforceable security interest (see s 10 for writing requirements for security agreements) unless the parties specifically agree to postpone the time of attachment, in which case the security interest attaches at that specified date. | ||
Generally, once security is perfected, the creditor’s interest has priority over the interests of third parties, whereas unperfected security takes a lower priority (s 19). However, as described above, one exception to s 19 is in s 30 where a creditor’s interest in the collateral does not continue because of a ''bona fide'' purchaser’s interest, but the creditor’s interest will continue in the proceeds. | Generally, once security is perfected, the creditor’s interest has priority over the interests of third parties, whereas unperfected security takes a lower priority (s 19). However, as described above, one exception to s 19 is in s 30 where a creditor’s interest in the collateral does not continue because of a ''bona fide'' purchaser’s interest, but the creditor’s interest will continue in the proceeds. | ||