Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies if either of the following security interests is vested in the grantor under section 267 or 267A:
(a) a security interest of a consignor under a commercial consignment (see paragraph 12(3)(b));
(b) a security interest of a lessor or bailor under a PPS lease (see paragraph 12(3)(c)).
Entitlement to damages and compensation
(2) The consignor, or lessor or bailor:
(a) is taken to have suffered damage immediately before the time the security interest vests in the grantor under section 267 or 267A (as the case requires); and
(b) may recover an amount of compensation from the grantor equal to the greater of the following amounts:
(i) the amount determined in accordance with the lease, bailment or consignment;
(ii) the sum of the market value of the leased, bailed or consigned property immediately before the time mentioned in paragraph 267(1)(b), and the amount of any other damage or loss resulting from the termination of the lease, bailment or consignment.
Note: The lessor, bailor or consignor may be able to prove the amount of compensation in proceedings related to the bankruptcy or winding - up of the grantor.