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

Schedule 5   Other legislation

Health Insurance Act 1973

23   After section 20A

Insert:

20AA Security interest must not be created in medicare benefit

(1) This section applies to a medicare benefit (an assigned benefit ) if an assignment has been made, or an agreement has been entered into, in accordance with section 20A, in relation to the medicare benefit.

(2) A person must not enter into a security agreement (within the meaning of the Personal Property Securities Act 2009), to the extent that the agreement purports to provide for a PPSA security interest in an assigned benefit.

Note: For the meaning of security agreement , see section 10 of the Personal Property Securities Act 2009.

(3) A security interest that is purported to be provided for by a security agreement entered into in contravention of subsection (2) is void and is taken never to have had effect.

(4) This section applies despite anything in the Personal Property Securities Act 2009.

(5) This section does not affect the operation of subsection 20A(5).

(6) In this section:

PPSA security interest means a security interest within the meaning of the Personal Property Securities Act 2009 and to which that Act applies, other than a transitional security interest within the meaning of that Act.

Note 1: The Personal Property Securities Act 2009 applies to certain security interests in personal property. See the following provisions of that Act:

(a) section 8 (interests to which the Act does not apply);

(b) section 12 (meaning of security interest );

(c) Chapter 9 (transitional provisions).

Note 2: For the meaning of transitional security interest , see section 308 of the Personal Property Securities Act 2009.