Personal Property Securities (Corporations and Other Amendments) Act 2010 (96 of 2010)
Schedule 1 Corporations Act 2001
Part 8 PPSA retention of title property
156 Sections 440B to 440C
Repeal the sections, substitute:
440B Restrictions on exercise of third party property rights
General rule
(1) During the administration of a company, the restrictions set out in the table at the end of this section apply in relation to the exercise of the rights of a person (the third party ) in property of the company, or other property used or occupied by, or in the possession of, the company, as set out in the table.
Note: The property of the company includes any PPSA retention of title property of the company (see section 435B).
Exception - consent of administrator or leave of court
(2) The restrictions set out in the table at the end of this section do not apply in relation to the exercise of a third party's rights in property if the rights are exercised:
(a) with the administrator's written consent; or
(b) with the leave of the Court.
Possessory security interests - continued possession
(3) If a company's property is subject to a possessory security interest, and the property is in the lawful possession of the secured party, the secured party may continue to possess the property during the administration of the company.
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Restrictions on exercise of third party rights |
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Item |
If the third party is … |
then … |
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1 |
a secured party in relation to property of the company, and is not otherwise covered by this table |
the third party cannot enforce the security interest. |
|
2 |
a secured party in relation to a possessory security interest in the property of the company |
the third party cannot sell the property, or otherwise enforce the security interest. |
|
3 |
a lessor of property used or occupied by, or in the possession of, the company, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in goods arising out of a lease of the goods |
the following restrictions apply: (a) distress for rent must not be carried out against the property; (b) the third party cannot take possession of the property or otherwise recover it; (c) if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest. |
|
4 |
an owner (other than a lessor) of property used or occupied by, or in the possession of, the company, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in the property |
the following restrictions apply: (a) the third party cannot take possession of the property or otherwise recover it; (b) if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest. |