Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 166

Scope

  (1)   This section applies if:

  (a)   one of the following defects in a registration that describes particular collateral arises at a particular time (the defect time ):

  (i)   a defect mentioned in paragraph   165(a) or (d);

  (ii)   a defect mentioned in paragraph   165(b), other than a defect resulting from a change of the grantor in relation to the collateral; and

  (b)   the defect does not arise only because of an irregularity, omission or error in a financing statement or a financing change statement.

Example:   A defect mentioned in paragraph   165(a) may occur if there is a change in the serial number under which collateral is required to be described in the register. For example, a patent may be required to be described by serial number (a Patent Application Number or a Patent Number). The Patent Application Number may be changed to a Patent Number when the patent is registered on the patents register.

Note:   A change of the grantor may occur if the collateral described in the registration is transferred. In this case, the secured party's security interest may be temporarily perfected for a certain period (see section   34).

Registration is temporarily unaffected by the defect

  (2)   Despite sections   164 and 165, the defect does not make the registration ineffective for the period starting at the defect time and ending at the earliest of the following times:

  (a)   the end time for the registration (as registered immediately before the defect time);

  (b)   the end of the month that is 60 months after the defect time;

  (c)   the end of 5 business days after the day the secured party acquires actual or constructive knowledge of the defect.

Note:   The period mentioned in paragraph   (c) may be extended by a court under section   293.

Registration becomes ineffective

  (3)   However, the registration becomes ineffective with respect to the collateral under sections   164 and 165 because of the defect immediately after the earliest time mentioned in subsection   (2), unless, at or before that time, the registration is amended to correct the defect.