Commonwealth Consolidated Acts Commonwealth Consolidated ActsThis Part is about taking personal property free of security interests.
Rules are set out for when personal property may be bought or leased free of a security interest in relation to the following:
(a) unperfected security interests;
(b) serial number defects;
(c) motor vehicles;
(d) taking in the ordinary course of business;
(e) personal, domestic or household property;
(f) currency;
(g) taking investment instruments or intermediated securities in the ordinary course of trading;
(h) investment instruments;
(i) intermediated securities;
(j) temporarily perfected security interests.
If a transferee takes personal property (or an accession) free of a security interest by the operation of this Part, the secured party's rights are subrogated to the rights of the transferor. Payment of the purchase price before the transferee receives notice of subrogation discharges the transferee's obligation (to the extent of the payment).