Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Despite sections 238, subsections 239(1) and (2) and section 240, the law of the Commonwealth (other than the law relating to conflict of laws) governs a security interest if:
(a) the grantor is an Australian entity at the time the security interest attaches to the collateral; and
(b) the security agreement that provides for the security interest expressly provides that the law of the Commonwealth, or that law as it applies in a particular State or Territory, governs the security interest.
(2) However, a security agreement may not provide for the law of the Commonwealth, or that law as it applies in a particular State or Territory, to govern a security interest in the following intangible property:
(a) an account;
(b) a transfer of:
(i) an account; or
(ii) chattel paper;
(c) intellectual property or an intellectual property licence.
Note 1: For the law that governs security interests in such kinds of intangible property, see section 239.
Note 2: The parties to a security agreement may provide that the law of the Commonwealth governs a security interest in an ADI account if it would not be manifestly contrary to public policy (see subsection 239(5)).