New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) In this Act, unless the context otherwise requires,—
accessions means goods that are installed in, or affixed to, other goods
A replacement motor installed in a car.
account receivable means a monetary obligation that is not evidenced by chattel paper, an investment security, or by a negotiable instrument, whether or not that obligation has been earned by performance
advance—
(a) means the payment of money, the provision of credit, or the giving of value; and
(b) includes any liability of the debtor to pay interest, credit costs, and other charges or costs payable by the debtor in connection with an advance or the enforcement of a security interest securing the advance
after-acquired property means personal property that is acquired by a debtor after the security agreement is made
cash proceeds means proceeds in the form of money, cheques, drafts, or deposit accounts in banks or similar institutions
chattel paper means 1 or more writings that evidence both a monetary obligation and a security interest in, or lease of, specific goods or specific goods and accessions
A hire purchase agreement.
collateral means personal property that is subject to a security interest
commercial consignment—
(a) means a consignment where—
(i) a consignor has reserved an interest in the goods that the consignor has delivered to the consignee for the purpose of sale, lease, or other disposition; and
(ii) both the consignor and the consignee deal in the ordinary course of business in goods of that description; but
(b) does not include an agreement under which goods are delivered to an auctioneer for the purpose of sale
consumer has the meaning set out in section 57
consumer goods means goods that are used or acquired for use primarily for personal, domestic, or household purposes
A computer for home use.
country includes any State, territory, province, or other part of a country
Court or court means the High Court of New Zealand
crops means crops, whether matured or otherwise, and whether naturally grown or planted, attached to land by roots or forming part of trees or plants attached to land; but does not include trees
debtor—
(a) means—
(i) a person who owes payment or performance of an obligation secured, whether or not that person owns or has other rights in the collateral; or
(ii) a person who receives goods from another person under a commercial consignment; or
(iii) a lessee under a lease for a term of more than 1 year; or
(iv) a transferor of an account receivable or chattel paper; or
(v) a transferee of or successor to the interest of a person referred to in subparagraphs (i) to (iv); or
(vi) if the person referred to in subparagraph (i) and the person who owns or has other rights in the collateral are not the same person, includes—
(A) the person who owns or has other rights in the collateral, where the term debtor is used in a provision of this Act dealing with the collateral; or
(B) the obligor, where the term debtor is used in a provision of this Act dealing with the obligation; or
(C) both the person who owns or has other rights in the collateral and the obligor (if the context so requires); and
(b) includes a trustee for any of the persons referred to in paragraph (a)
default means—
(a) the failure to pay or otherwise perform the obligation secured when due; or
(b) the occurrence of an event that, under the security agreement, gives the secured party the right to enforce the security
document means a document in any form; and includes—
(a) any writing on any material; and
(b) information recorded or stored on, and capable of transmission to or from, a computer or other device; and material subsequently derived from information so recorded, stored, or transmitted; and
(c) a book, graph, or drawing; and
(d) a photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable of being reproduced by any means
document of title means a writing issued by or addressed to a bailee—
(a) that covers goods in the bailee's possession that are identified or are fungible portions of an identified mass; and
(b) in which it is stated that the goods identified in it will be delivered to a named person, or to the transferee of that person, or to bearer, or to the order of a named person
emissions unit means a unit as defined in section 4(1) of the Climate Change Response Act 2002
equipment means goods that are held by a debtor other than as inventory or consumer goods
An office computer.
existing secured party has the meaning set out in section 193
financing change statement has the meaning set out in section 135
financing statement has the meaning set out in section 135
fund has the meaning set out in section 57
future advance—
(a) means the payment of money, the provision of credit, or the giving of value secured by a security interest, occurring after the security agreement has been signed, or assented to by letter, telegram, cable, telex message, facsimile, electronic mail, or other similar means of communication, whether or not provided or given under an obligation; and
(b) includes advances, reasonable costs incurred, and expenditures made for the protection, maintenance, preservation, or repair of the collateral, or for the enforcement of the security interest
futures contract has the same meaning as in section 37 of the Securities Markets Act 1988
goods—
(a) means tangible personal property; and
(b) includes crops, the unborn young of animals, trees that have been severed, and petroleum or minerals that have been extracted; but
(c) does not include chattel paper, a document of title, a negotiable instrument, an investment security, or money
intangible means personal property other than chattel paper, a document of title, goods, an investment security, money, or a negotiable instrument
Trademarks, patents, and copyright.
inventory means goods that are—
(a) held by a person for sale or lease, or that have been leased by that person as lessor; or
(b) to be provided or have been provided under a contract for services; or
(c) raw materials or work in progress; or
(d) materials used or consumed in a business
investment security—
(a) means—
(i) a writing (whether or not in the form of a security certificate) that is recognised in the place in which it is issued or dealt with as evidencing a futures contract, or a warrant or option or share, right to participate, or other interest in property or an enterprise, or that evidences an obligation of the issuer, and that, in the ordinary course of business, is transferred or withdrawn by—
(A) delivery with any necessary endorsement, assignment, or registration in the records of the issuer or agent of the issuer, or by compliance with restrictions on transfer or withdrawal; or
(B) an entry in the records of a clearing house or securities depository; or
(C) an entry in the records maintained for that purpose by or on behalf of the issuer; or
(D) an entry in the records maintained for that purpose by or on behalf of the nominee:
(ii) an emissions unit; but
(b) does not include a writing that evidences a monetary obligation that is secured by an interest in land
Shares in a listed company.
knowledge has the meaning set out in section 19
land includes all estates and interests, whether freehold or chattel, in real property
lease for a term of more than 1 year—
(a) means a lease or bailment of goods for a term of more than 1 year; and
(b) includes—
(i) a lease for an indefinite term, including a lease for an indefinite term that is determinable by 1 or both of the parties not later than 1 year after the date of its execution; and
(ii) a lease for a term of 1 year or less that is automatically renewable or that is renewable at the option of 1 of the parties for 1 or more terms, where the total of the terms, including the original term, may exceed 1 year; and
(iii) a lease for a term of 1 year or less where the lessee, with the consent of the lessor, retains uninterrupted or substantially uninterrupted possession of the leased goods for a period of more than 1 year after the day on which the lessee first acquired possession of them, but the lease does not become a lease for a term of more than 1 year until the lessee's possession extends for more than 1 year; but
(c) does not include—
(i) a lease by a lessor who is not regularly engaged in the business of leasing goods; or
(ii) a lease of household furnishings or appliances as part of a lease of land where the use of the goods is incidental to the use and enjoyment of the land; or
(iii) a lease of prescribed goods, regardless of the length of the lease term
money means currency authorised as a medium of exchange by the law of New Zealand or of any other country
motor vehicle or vehicle has the meaning set out in section 57
negotiable instrument—
(a) means—
(i) a bill of exchange or promissory note within the meaning of the Bills of Exchange Act 1908; or
(ii) any other writing that evidences a right to payment of money and is of a kind that, in the ordinary course of business, is transferred by delivery with any necessary endorsement or assignment; or
(iii) a letter of credit, if the letter of credit states on it that it must be presented on claiming payment; but
(b) does not include chattel paper, a document of title, or an investment security
new value means value other than antecedent debt or liability
news medium means any agency whose business, or part of whose business, consists of a news activity
non-purchase money security interest means a security interest that is not a purchase money security interest
obligation secured means, when determining the amount payable under a lease that secures payment or performance of an obligation,—
(a) the amount originally contracted to be paid under the lease; and
(b) any other amount payable under the terms of the lease; and
(c) any other amount required to be paid by the lessee to obtain ownership of the collateral;—
less any amount paid before the determination
organisation means any body or organisation, whether incorporated or unincorporated
other goods means goods in which an accession is installed or to which the accession is affixed
The car in which a replacement motor is installed.
perfected by possession, in relation to a security interest, means the security interest has attached and the secured party has taken possession of the collateral (except where possession is a result of seizure or repossession)
perfected by registration, in relation to a security interest, means the security interest has attached and a financing statement has been registered in respect of the security interest
perfected security interest, in relation to a security interest, means the security interest is perfected by possession or by registration or is temporarily perfected, as the case may be
personal information has the same meaning as in section 2(1) of the Privacy Act 1993
personal property includes chattel paper, documents of title, goods, intangibles, investment securities, money, and negotiable instruments
prescribed means prescribed by regulations
prior law has the meaning set out in section 193
prior registration law has the meaning set out in section 193
prior security interest has the meaning set out in section 193
prior third party interest has the meaning set out in section 193
proceeds—
(a) means identifiable or traceable personal property—
(i) that is derived directly or indirectly from a dealing with collateral or the proceeds of collateral; and
(ii) in which the debtor acquires an interest; and
(b) includes—
(i) a right to an insurance payment or other payment as indemnity or compensation for loss of or damage to the collateral or proceeds; and
(ii) a payment made in total or partial discharge or redemption of chattel paper, an intangible or investment security, or a negotiable instrument; but
(c) does not include animals merely because they are the offspring of the animals that are collateral
purchase means taking by sale, lease, discount, assignment, negotiation, mortgage, pledge, lien, issue, reissue, gift, or any other consensual transaction that creates an interest in personal property
purchase money security interest—
(a) means—
(i) a security interest taken in collateral by a seller to the extent that it secures the obligation to pay all or part of the collateral's purchase price; or
(ii) a security interest taken in collateral by a person who gives value for the purpose of enabling the debtor to acquire rights in the collateral, to the extent that the value is applied to acquire those rights; or
(iii) the interest of a lessor of goods under a lease for a term of more than 1 year; or
(iv) the interest of a consignor who delivers goods to a consignee under a commercial consignment; but
(b) does not include a transaction of sale and lease back to the seller
A hire purchase agreement relating to the purchase of a television.
A loan by a bank for the purchase of a car where the loan is secured over the car, and the proceeds are applied towards the purchase.
purchase price and value, in relation to a purchase money security interest, include credit charges and interest payable for the purchase or loan credit
purchaser means a person who purchases personal property
receiver has the same meaning as in section 2 of the Receiverships Act 1993
register has the meaning set out in section 135
registered trader has the meaning set out in section 57
Registrar has the meaning set out in section 135
regulations means regulations in force under this Act
related company has the same meaning as in section 2(3) of the Companies Act 1993
Secretary means the chief executive of the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act
secured party—
(a) means a person who holds a security interest for the person's own benefit or for the benefit of another person; and
(b) includes a trustee where the holders of the obligations issued, guaranteed, or provided for under a security agreement are represented by a trustee as the holder of the security interest
security agreement—
(a) means an agreement that creates or provides for a security interest; and
(b) includes a writing that evidences a security agreement (if the context permits)
security interest has the meaning set out in section 17
security trust deed means a deed or other document by the terms of which a person issues or guarantees or provides for the issue or guarantee of debt obligations secured by a security interest, and in which another person is appointed as trustee for the holders of the debt obligations
temporarily perfected security interest means a security interest that is temporarily perfected in accordance with section 28 or Part 4
transitional period has the meaning set out in section 193
unperfected security interest means a security interest that is not a perfected security interest
value—
(a) means consideration that is sufficient to support a simple contract; and
(b) includes an antecedent debt or liability
verification statement has the meaning set out in section 135
whole means an accession and the goods in which the accession is installed or to which the accession is affixed
working day means a day of the week other than—
(a) Saturday, Sunday, Good Friday, Easter Monday, Anzac Day, the Sovereign's birthday, Labour Day, and Waitangi Day; and
(b) a day in the period commencing on 25 December in any year and,—
(i) except in sections 165, 168, and 178, ending with 2 January in the following year; and
(ii) in sections 165, 168, and 178, ending with 15 January in the following year
writing includes—
(a) the recording of words in a permanent and legible form; and
(b) the recording of words by electronic means that can be retrieved and read; and
(c) the display of words by any form of electronic or other means of communication that is subsequently recorded by electronic means that can, by any means, be retrieved and read.
(2) For the purposes of this Act, fungible goods and fungible securities are goods or securities of which any unit is by nature or usage of trade, the equivalent of any other like unit, and includes unlike units to the extent that they are treated as equivalents under a security agreement.
(3) For the purposes of this Act, the determination of whether goods are consumer goods, equipment, or inventory is to be made at the time when the security interest in the goods attached, unless otherwise provided in this Act.
Section 16(1) Court or court: inserted, on 15 December 2005, by section 3 of the Personal Property Securities Amendment Act 2005 (2005 No 110).
Section 16(1) dealer: repealed, on 15 December 2003, by section 145 of the Motor Vehicle Sales Act 2003 (2003 No 12).
Section 16(1) emissions unit: inserted, on 26 September 2008, by section 81(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).
Section 16(1) futures contract: amended, on 1 December 2002, by section 30 of the Securities Markets Amendment Act 2002 (2002 No 44).
Section 16(1) investment security paragraph (a): substituted, on 26 September 2008, by section 81(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).
Section 16(1) registered trader: inserted, on 15 December 2003, by section 145 of the Motor Vehicle Sales Act 2003 (2003 No 12).
Section 16(1) related company: inserted, on 15 April 2004, by section 5 of the Personal Property Securities Amendment Act 2004 (2004 No 30).