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CORPORATIONS ACT 2001 - SECT 442B

Dealing with property subject to circulating security interests

Scope

             (1)  This section applies if a security interest in property (the secured property ) of a company under administration was a circulating security interest when the interest arose, but has stopped being a circulating security interest because:

                     (a)  in the case of a PPSA security interest--the property has stopped being a circulating asset (within the meaning of the Personal Property Securities Act 2009 ); or

                     (b)  in the case of a security interest that was a floating charge when it arose--the floating charge has since become a fixed or specific charge.

Note 1:       A circulating security interest can be either a PPSA security interest to which a circulating asset has attached, or a floating charge, in the circumstances set out in section 51C.

Note 2:       For the meaning of circulating asset , see section 340 of the Personal Property Securities Act 2009 .

Security interest in circulating asset

             (2)  Subject to sections 442C and 442D, in the case of a PPSA security interest, the administrator may deal with any of the secured property in any way the company could deal with the secured property immediately before it stopped being a circulating asset.

Floating charge

             (3)  Subject to sections 442C and 442D, in the case of a security interest that was a floating charge when it arose, the administrator may deal with any of the secured property as if the security interest were still a floating charge.

Note:          Section 442C deals with the disposal of encumbered property by an administrator. Section 442D makes the administrator's functions and powers subject to those of a secured party, receiver or controller.



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