Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 34

Security interest is temporarily perfected

  (1)   If collateral is transferred, and at the time of the transfer a secured party held a perfected security interest in the collateral, the security interest is temporarily perfected for the period starting at the time of the transfer and ending at the earliest of the following times:

  (a)   the end of the month that is 24 months after the time of the transfer;

  (b)   if the security interest was perfected by registration at the time of the transfer--the end time for the registration (as registered at the time of the transfer);

  (c)   if another security interest attaches to the collateral at or after the time of the transfer, and the other security interest is perfected:

  (i)   in a case in which the original secured party consented to the transfer--the end of 5 business days after the day of the transfer; or

  (ii)   in a case in which the original secured party otherwise acquires the actual or constructive knowledge required to perfect the original secured party's interest by registration (or to re - perfect the interest by an amendment of a registration)--the end of 5 business days after the day the original secured party acquires the knowledge.

Note:   The knowledge required is the knowledge of the transferee's (the new grantor's) details. Unless these are registered, the original secured party's registration may be ineffective under section   165.

Security interest becomes unperfected

  (2)   However, the security interest becomes unperfected immediately after the earliest time mentioned in subsection   (1), unless, at or before that time, the security interest is perfected otherwise than under subsection   (1).

Transfer free of security interest

  (3)   This section does not apply in relation to a transfer of collateral if the transferee takes the collateral free of the security interest.