Reprint as at 26 September 2008

Personal Property Securities Act 1999

Public Act	1999 No 126
Date of assent	14 October 1999
Commencement	see section 1(2), (3)

Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This Act is administered by the Ministry of Economic Development.

Title

1 Short Title and commencement

Part 1
Outline of this Act

2 Purpose of this Part

3 Status of this Part

4 What this Act is about

5 How Act arranged

6 Part 2 (Preliminary provisions)

7 Part 3 (Principles relating to enforceability of security interests)

8 Part 4 (Attachment and perfection of security interests in particular kinds of personal property)

9 Part 5 (When buyers or lessees of goods or other collateral take goods or other collateral free of unperfected security interests)

9A Part 6 (Additional provisions relating to when buyers or lessees of motor vehicles take motor vehicles free of security interest)

10 Part 7 (Priority between security interests)

11 Part 8 (Priority of other interests in collateral)

12 Part 9 (Enforcement of security interests)

13 Part 10 (Personal property securities register)

14 Part 11 (Miscellaneous)

15 Part 12 (Transitional provisions)

Part 2
Preliminary provisions

Interpretation

16 Interpretation

17 Meaning of security interest

17A Subordinated trusts not security interests

18 Meaning of possession in certain cases

19 Meaning of knowledge

20 Registration of financing statement not to constitute notice or knowledge

21 Status of examples

Application

22 Act to bind the Crown

23 When Act does not apply

24 Application of Act not affected by secured party having title to collateral

25 Rights or duties that apply to be exercised in good faith and in accordance with reasonable standards of commercial practice

Conflict of laws

26 When New Zealand law applies

27 Continuity of perfection where goods are moved to New Zealand

28 Temporary perfection of security interest in collateral moved to New Zealand in other cases

29 Location of debtor for purposes of sections 30 to 33

30 Validity, perfection, etc, of security interests in intangibles, movable equipment, etc

31 Position where debtor relocates to another jurisdiction, etc

32 Position where no public record, etc, of perfection of security interest

33 Validity, perfection, etc, of security interest in minerals

Part 3
Principles relating to enforceability of security interests

Purpose of Part

34 Purpose of this Part

Effectiveness of security agreement

35 Effectiveness of security agreement

Enforceability of security agreements against third parties

36 Enforceability of security agreements against third parties

37 Description of collateral as consumer goods or equipment inadequate

38 What constitutes adequate description of collateral held as inventory

39 Description of proceeds not required for enforceability against third parties

Attachment of security interests generally

40 Attachment of security interests generally

Perfection of security interests generally

41 When security interest perfected

42 Continuity of perfection where perfected security interest subsequently perfected in another way

Part 4
Attachment and perfection of security interests in particular kinds of personal property

After-acquired property

43 Security interests in after-acquired property

44 Attachment of security interests in after-acquired property

Proceeds

45 Continuation of security interests in proceeds

46 When security interest in proceeds is continuously perfected

47 Temporary perfection of security interests in proceeds in other cases

Collateral returned to debtor

48 Temporary perfection of security interest in negotiable instrument or investment security returned to debtor

49 Temporary perfection of security interest in negotiable document of title or goods returned to debtor

Documents of title and goods held by bailee

50 Perfection where goods in hands of bailee

Crops

51 Security interests in crops

Part 5
When buyers or lessees of goods or other collateral take goods or other collateral free of security interest

52 Buyer or lessee of collateral takes collateral free of unperfected security interests

53 Buyer or lessee of goods sold or leased in ordinary course of business takes goods free of certain security interests

54 Buyer or lessee of consumer goods of certain value takes goods free of security interest

55 When buyer or lessee of serial-numbered consumer goods or equipment takes consumer goods or equipment free of security interest perfected by registration

56 When buyer or lessee of goods takes goods free of temporarily perfected security interests

Part 6
Additional provisions relating to when buyers or lessees of motor vehicles take motor vehicles free of security interest

57 Interpretation

58 Buyer or lessee of motor vehicle acquired from registered trader takes motor vehicle free of security interest

59 Reimbursement of secured party by registered trader

60 Reimbursement of secured party by fund [Repealed]

61 Procedure for making claims for reimbursement

62 Subrogation of rights of action against debtor and registered trader

63 District Court Judge may declare certain persons responsible for repayment to registered trader

64 Application of Companies Act 1993, etc, where dealer company in liquidation [Repealed]

65 Secured party subrogated to rights of registered trader against buyer or lessee

Part 7
Priority between security interests

Priority of security interests generally

66 Priority of security interests in same collateral when Act provides no other way of determining priority

67 Original method of perfection applies to continuously perfected security interest

68 Time of registration, etc, of original collateral is also time of registration, etc, of proceeds

69 Transfer of security interests does not affect priority

70 Voluntary subordination of security interests

Priority of advances

71 Security agreement may provide for future advances

72 Priority of security interest applies to all advances

Priority of purchase money security interests

73 Priority of purchase money security interest in collateral or its proceeds, other than inventory or intangibles

74 Priority of purchase money security interest in inventory or its proceeds

75 Priority of purchase money security interest in intangible or its proceeds

75A Non-proceeds security interest in accounts receivable

76 Priority between purchase money security interests in goods or their proceeds taken by seller, etc

77 Priority between purchase money security interests in same goods or their proceeds not taken by seller, etc

Priority of security interests in accessions

78 Security interests in accessions

79 Priority of security interest in goods before they become accessions

80 Certain interests in whole have priority over security interests in goods before they become accessions

81 Certain interests have priority over security interests in goods that are not attached when goods become accession

Priority of security interests in processed or commingled goods

82 Continuation of security interests in goods that become part of processed or commingled goods

83 Original method of perfection of goods applies to goods that become part of processed or commingled goods

84 Limit on value of priority of goods that become part of processed or commingled goods

85 Priority where more than 1 security interest continues in processed or commingled goods

86 Priority of purchase money security interest in goods that continues in processed or commingled goods

Priority of security interests in transferred collateral

87 Rights of debtor may be transferred

88 General priority of security interest in transferred collateral over security interests granted by transferee

89 Transfer of debtor's interest in collateral with prior consent of secured party

90 Transfer of debtor's interest in collateral where secured party has knowledge of certain information

91 Transfer of debtor's interest in collateral without secured party's consent

92 Prior security interest not subordinated

Part 8
Priority of other interests in collateral

Priority of liens

93 Lien has priority over security interest relating to same goods

Priority of purchasers of money, negotiable instruments, investment securities, and chattel paper

94 When holder of money takes money free of perfected security interest in money

95 Priority of creditor who receives payment of debt

96 Priority of purchaser of negotiable instrument

97 Priority of purchaser of investment security

98 Priority of purchaser of chattel paper

99 Priority of holder of negotiable document of title

Priority of certain interests in crops

100 Lessor or mortgagee of land not affected by subsequent security interest in crops

101 Perfected security interest in crops not prejudicially affected by subsequent sale, etc, of land

Priority of interests on assignment of accounts receivable or chattel paper

102 Priority of interests on assignment of account receivable or chattel paper

103 Execution creditor has priority over unperfected security interest

Part 9
Enforcement of security interests

Interpretation

104 Meaning of surplus

Application

105 Application of this Part

106 Part not to apply to receivers

107 When contracting out of certain provisions in this Part permitted

Rights of secured party to apply collateral in satisfaction of secured obligation

108 Secured party may apply certain collateral in satisfaction of secured obligation

Disposal of collateral on default

109 Secured party may take possession of and sell collateral

110 Duty of secured party selling collateral to obtain best price reasonably obtainable

110A No defence or indemnity

111 Apparent possession of certain collateral permitted in some cases

112 Power of sale applies to document of title and related goods

113 Methods of sale of collateral

114 Notice of sale of collateral

115 Extinguishment of subordinate security interests on sale

116 Secured party to give statement of account to debtor, etc

116A Secured party selling collateral must pay prior ranking secured parties

117 Distribution of surplus

118 Surplus may be paid into court

119 Debtor's, etc, right to recover surplus

Retention of collateral by secured party

120 Proposal of secured party to retain collateral

121 Persons entitled to notice may object to proposal

122 Person making objection may be requested by secured party to prove interest

123 Position where persons entitled to notice do not object to retention of collateral by secured party

124 Disposal of collateral to purchaser for value and in good faith

Enforcement of security interests in accessions

125 Secured party must not damage goods when removing accession

126 Person with interest in other goods entitled to reimbursement for damage caused by removal of accession

127 Person entitled to reimbursement may refuse permission to remove accession

128 Secured party may apply to court for order in respect of removal of accession

129 Secured party must give notice of removal of accession

130 When person with interest in whole may retain accession

131 Court may make order concerning removal of accession

Right to redeem collateral and reinstate security agreement

132 Entitled persons may redeem collateral

133 Debtor may reinstate security agreement

134 Limit on reinstatement of security agreement

Part 10
Personal property securities register

Interpretation

135 Interpretation

Registrar of Personal Property Securities

136 Appointment of Registrar

137 Power of Registrar to delegate

138 Registrar may refuse to provide certain services relating to register

Personal property securities register

139 Personal property securities register

140 Contents of register

Registration of financing statements

141 Person may register financing statement

142 Data required to register financing statement

143 When financing statement or financing change statement not to be registered

144 When financing statement or financing change statement registered

145 Verification statement to be forwarded to person who registered financing statement, etc

146 When financing statement may be registered

147 Financing statement may relate to 1 or more security agreements

148 When secured party to notify debtor about registration of financing statement

Validity of registrations of financing statements

149 Registration of financing statement invalid only if seriously misleading

150 When financing statement seriously misleading

151 Proof that person actually misled not necessary

152 Validity of registration when description of part of collateral is omitted

Duration and renewal of registrations

153 Duration of registration of financing statement

154 Renewal of registration

Registrations where security interest is transferred

155 Registration of financing change statement in respect of transfer of security interest perfected by registration

156 Registration of financing statement in respect of transfer of security interest not perfected by registration

157 When disclosure of transfer of security interest may be registered

158 Transferee of security interest secured party for purposes of Act

Registrations in respect of subordinated security interests

159 Registration of financing change statement in respect of subordinated security interest

Voluntary amendments to registrations

160 Voluntary amendment to or discharges of registrations of financing statements

Compulsory discharge or amendment of registration

161 Discharge of registration relating only to consumer goods

162 When debtor, etc, may demand registration of financing change statement

163 Matters that may be required by demand

164 Application of sections 165 to 167 in cases not involving security trust deeds

165 Procedure where non-compliance with demand and no court order in cases not involving security trust deed

166 Consequences of non-receipt, and receipt, of court order in cases not involving security trust deed

167 Secured party may obtain court order in cases not involving security trust deed

168 Procedure where non-compliance with demand and security trust deed involved

169 No fee for compliance with demand

169A Restoration of registration

Removal of data from register and correction of errors or omissions

170 Removal of data from register

170A Correction of errors or omissions

Searches of register

171 Search of register

172 Search criteria

173 Search purposes, etc

174 When search constitutes interference with privacy of individual

175 Printed search result receivable as evidence

Part 11
Miscellaneous

Entitlement to damages

176 Entitlement to damages for breach of obligations

Secured party to make security agreement and other information available to debtor and others

177 Secured party to provide certain information relating to security interest

178 Time for complying with request

179 Exemption from complying with request

180 Secured party may recover costs arising from request

181 Application to court for compliance with request

182 Consequences of not complying with court order

183 Obligation to disclose successor in security interest when request made

Service of notices, etc

184 Application of sections 185 to 189

185 Method of service of notices, etc

186 Court may make order concerning service of notice, etc

187 How to effect service of notice, etc, by post

188 How to effect service of notice, etc, by facsimile

189 How to effect service of notice, etc, by electronic mail

Regulations

190 Regulations

191 Acts and regulations amended

192 Repeals and revocations

Part 12
Transitional provisions

193 Interpretation

Enforceability of prior security interest against third parties

194 Prior security interests continue to be enforceable against third parties during transitional period

Perfection of prior security interests

195 Prior registered security interests deemed to be perfected by registration during transitional period

196 Certain other prior security interests deemed to be perfected during transitional period

197 Prior security interests to be perfected during transitional period

198 Consequences of not perfecting certain security interests

199 Time of registration of certain prior security interests

Priority of prior security interests

200 Priority of prior security interests during transitional period

201 Priority of third party interests during transitional period

Schedule 1
Acts amended

Schedule 2
Regulations amended

Schedule 3
Enactments repealed

Schedule 4
Regulations and orders revoked

Reprint notes

An Act to reform the law relating to security interests in personal property and, in particular,—

(a) to provide for the creation and enforceability of security interests in personal property; and

(b) to provide for the determination of priority between security interests in the same personal property; and

(c) to provide for the determination of priority between security interests and other types of interests in the same personal property; and

(d) to provide for the enforcement of security interests in personal property other than consumer goods; and

(e) to provide for the establishment of a register of security interests in personal property

New Zealand Legislation: Acts

Home | Search: Acts Bills Regulations All | Browse: Acts Bills Regulations All | Glossary | About | Guide | Site map | Buy Online

Personal Property Securities Act 1999 No 126 (as at 26 September 2008), Public Act

Personal Property Securities Act 1999

Note

Contents

Home | Search: Acts Bills Regulations All | Browse: Acts Bills Regulations All | Glossary | About | Guide | Site map | Buy Online