Personal Property Securities (Corporations and Other Amendments) Act 2010 (96 of 2010)

Schedule 2   Personal Property Securities Act 2009

Part 1   Specific amendments

77   At the end of section 136

Add:

Extinguishment of obligation owed to the secured party

(5) If a secured party (the retaining secured party ) takes collateral under this section free of the interests referred to in subsection (2):

(a) the debt or other obligation secured by the security interest held by the retaining secured party is extinguished; but

(b) paragraph (2)(c) does not have the effect that a debt or other obligation secured by another security interest in the collateral is extinguished, if the other security interest has a lower priority than the security interest of the retaining secured party.