Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The following provisions of this Division have effect in relation to an aircraft while a statutory lien on the aircraft continues in effect.
(2) The provisions apply:
(a) in spite of:
(i) any encumbrance in respect of the aircraft; and
(ii) any sale or disposition of, or dealing in, the aircraft or an interest in the aircraft; and
(b) whether or not AA has possession of the aircraft at any time.
(3) For the purposes of priorities amongst creditors and the purposes of the distribution of the proceeds of a sale made under section 67, the statutory lien has effect as a security interest in respect of the aircraft ranking in priority:
(a) after any security interest (other than a security interest that has attached to the aircraft as a circulating asset, within the meaning of the Personal Property Securities Act 2009 ) in respect of the aircraft created before the time of registration of the statutory lien, to the extent that the security interest covers a debt incurred before that time; and
(b) before any security interest that is not covered by paragraph (a), or to the extent that it is not covered by paragraph (a).
Note 1: Part 9.5 of the Personal Property Securities Act 2009 deals with security interests that attach to circulating assets. These interests are also described as floating charges.
Note 2: A registered interest (within the meaning of the Convention on International Interests in Mobile Equipment, done at Cape Town on 16 November 2001) may be a security interest covered by this subsection. A statutory lien is a non - consensual right or interest within the meaning of the Convention. The Convention is given the force of law in Australia by the International Interests in Mobile Equipment (Cape Town Convention) Act 2013 .
(3A) Subsection 73(2) of the Personal Property Securities Act 2009 applies to a statutory lien.
Note 1: The effect of this subsection is that the priority between a statutory lien on an aircraft and a security interest in the aircraft to which the Personal Property Securities Act 2009 applies is to be determined in accordance with this Act rather than the Personal Property Securities Act 2009 .
Note 2: Subsection 73(2) of the Personal Property Securities Act 2009 applies to statutory liens that arise after the commencement of subsection (3A) (which is the registration commencement time within the meaning of the Personal Property Securities Act 2009 ).
(4) A statutory lien is not to be taken by implication to have any effect otherwise than as provided by this Act.