Personal Property Securities Act. Australia

of security interests (see subsections 50(3) and 51(1)).

      43 Taking personal property free of unperfected security interest

      Main rule

      (1) A buyer or lessee of personal property, for value, takes the personal property free of an unperfected security interest in the property.

      Exception

      (2) Subsection (1) does not apply if the unperfected security interest was created or provided for by a transaction to which the buyer or lessee is a party, unless the personal property concerned is of a kind prescribed by the regulations for the purposes of this subsection.

      44 Taking personal property free of security interest if serial number incorrect or missing

      Main rule

      (1) A buyer or lessee of personal property takes the personal property free of a security interest in the property if:

      (a) the regulations provide that personal property of that kind may, or must, be described by serial number in a registration; and

      (b) searching the register, immediately before the time of the sale or lease, by reference only to the serial number of the property, would not disclose a registration that perfected the security interest.

      Exceptions

      (2) Subsection (1) does not apply if:

      (a) the buyer or lessee holds the personal property:

      (i) as inventory; or

      (ii) on behalf of a person who would hold the collateral as inventory; or

      (b) the security interest was created or provided for by a transaction to which the buyer or lessee is a party, unless the personal property concerned is of a kind prescribed by regulations for the purposes of this paragraph.

      (3) Within the period of 24 months after the registration commencement time, subsection (1) does not apply if the security interest is a transitional security interest, other than:

      (a) a migrated security interest in a motor vehicle; or

      (b) a migrated security interest in a watercraft within the meaning of the regulations.

      45 Taking motor vehicles free of security interest

      Incorrect or missing serial number

      (1) A buyer or lessee, for new value, of a motor vehicle of a kind prescribed by the regulations for the purpose of this section, takes the motor vehicle free of a security interest in the motor vehicle if:

      (a) the regulations provide that motor vehicles of that kind may, or must, be described by serial number; and

      (b) there is a time during the period between the start of the previous day and the time of the sale or lease by reference to which a search of the register (by reference otherwise only to the serial number of the motor vehicle) would not disclose a registration that perfected the security interest; and

      (c) the seller or lessor is: