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

Schedule 2  

23   Section 116

Repeal the section, substitute:

116 Application while there is a receiver or another controller of property

(1) This Chapter does not apply in relation to property while a person is a controller of the property in either of the following capacities:

(a) receiver;

(b) receiver and manager.

Note: See Part 5.2 of the Corporations Act 2001 for the powers, functions and duties of receivers, and other controllers, of the property of corporations.

(2) This Chapter (except section 131) applies in relation to property while a person is a controller of the property in a capacity other than those mentioned in subsection (1) of this section.

Note 1: Section 131 requires a secured party disposing of collateral to obtain market value for the collateral. Section 420A of the Corporations Act 2001 similarly requires a controller exercising a power of sale to obtain market value for the property sold.

Note 2: Subsection 115(7) enables the parties to a security agreement to contract out of the application of Part 4.3 under subsection (2) of this section.

(3) Despite subsection (1), if a grantor of a security interest in property is an individual, this Chapter applies in relation to the security interest while a person is a receiver, or a receiver and manager, of the property.

(4) In this section, each of the following terms, in relation to property of a corporation, has the same meaning as in the Corporations Act 2001:

(a) controller;

(b) receiver;

(c) receiver and manager.