Personal Property Securities (Corporations and Other Amendments) Act 2011 (35 of 2011)

Schedule 2  

62   At the end of Part 9.5

Add:

341A Control of an ADI account

(1) For the purposes of subsection 340(2), a secured party has control of an ADI account if:

(a) one or more of the following applies:

(i) the secured party is the ADI;

(ii) the secured party is able to direct disposition of the funds from the account without further consent by the grantor;

(iii) the secured party becomes the ADI’s customer with respect to the account; and

(b) if the secured party is not the ADI - depositing an amount in the ADI account does not result in any person coming under a present liability to pay:

(i) the debtor; or

(ii) if the debtor is a body corporate - a related body corporate (within the meaning of the Corporations Act 2001).

Note: However, a security interest in an ADI account is only perfected by control if the secured party is the ADI (see sections 21 and 25).

(2) A secured party has control under subsection (1) even if the grantor retains the right to direct the disposition of funds from the account.