Corporations Act 2001
This section applies if either of the following PPSA security interests is vested in a company under section 588FL :
(a) a PPSA security interest of a consignor under a commercial consignment;
(b) a PPSA security interest of a lessor or bailor under a PPS lease. Entitlement to damages and compensation 588FO(2)
The consignor, lessor or bailor:
(a) is taken to have suffered damage immediately before the PPSA security interest was vested in the company; and
(b) may recover an amount of compensation from the company equal to the greater of the following amounts:
(i) the amount determined in accordance with the consignment, lease or bailment;
(ii) the sum of the market value of the consigned, leased or bailed property immediately before the critical time that applies under section 588FL , and the amount of any other damage or loss resulting from the termination of the consignment, lease or bailment.
Note: The consignor, lessor or bailor may be able to prove the amount of compensation in proceedings related to the winding up of the company.
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