New Zealand Legislation: Acts

17 Meaning of security interest

• (1) In this Act, unless the context otherwise requires, the term security interest—

  • (a) means an interest in personal property created or provided for by a transaction that in substance secures payment or performance of an obligation, without regard to—

    • (i) the form of the transaction; and

    • (ii) the identity of the person who has title to the collateral; and

  • (b) includes an interest created or provided for by a transfer of an account receivable or chattel paper, a lease for a term of more than 1 year, and a commercial consignment (whether or not the transfer, lease, or consignment secures payment or performance of an obligation).

  (2) A person who is obligated under an account receivable may take a security interest in the account receivable under which that person is obligated.

  (3) Without limiting subsection (1), and to avoid doubt, this Act applies to a fixed charge, floating charge, chattel mortgage, conditional sale agreement (including an agreement to sell subject to retention of title), hire purchase agreement, pledge, security trust deed, trust receipt, consignment, lease, an assignment, or a flawed asset arrangement, that secures payment or performance of an obligation.

  Compare: Personal Property Security Act 1993 s 3(1) (Saskatchewan)