Personal Property Securities (Consequential Amendments) Act 2009 (131 of 2009)

Schedule 4   Personal Property Securities Act 2009

19   Subsections 40(1) and (2)

Repeal the subsections, substitute:

Continuous perfection prior to relocation event

(1) If the law of a foreign jurisdiction has governed a security interest in intangible property, or financial property, the security interest is taken to have been continuously perfected for the period covered by subsection (2) if:

(a) either of the following events (the relocation event ) occurs:

(i) the grantor becomes located in Australia;

(ii) the grantor transfers the collateral to a person who is located in Australia; and

(b) immediately before the relocation event, and at the time of that event:

(i) the security interest was effective; and

(ii) the security agreement providing for the security interest was enforceable against third parties; and

(c) as a result of the occurrence of the relocation event, the perfection (and the effect of perfection or non-perfection) of the security interest becomes governed by the law of Australia.

Note 1: For when bodies corporate, bodies politic or individuals are located in a jurisdiction, see section 235.

Note 2: For when laws of other jurisdictions govern a security interest, see Part 7.2.

(2) This subsection covers the period:

(a) starting at whichever of the following times is applicable:

(i) if the law of the foreign jurisdiction provides for the perfection (and the effect of perfection or non-perfection) of the security interest - when the security interest last became perfected under that law;

(ii) if subparagraph (i) does not apply to the law of the foreign jurisdiction, but that law provides for the public registration or recording of the security interest, or of a notice relating to the security interest - when the security interest, or such a notice, was so registered or recorded (or was last so registered or recorded);

(iii) if neither subparagraph (i) nor (ii) applies to the law of the foreign jurisdiction - when the security interest last became enforceable against third parties under that law; and

(b) ending when the relocation event occurs.

(2A) However, a security interest is not taken to have been continuously perfected under subsection (1) if, immediately before the relocation event:

(a) in a case in which the law of the foreign jurisdiction provides for the perfection (and effect of perfection or non-perfection) of the security interest - the security interest was not perfected under that law; or

(b) in a case in which paragraph (a) does not apply to the law of the foreign jurisdiction, but that law provides for the public registration or recording of the security interest, or of a notice relating to the security interest - the security interest, or such a notice, was not so registered or recorded.