Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 51

Main rule

  (1)   A person (the transferee ) who takes an interest in an intermediated security takes the interest free of a security interest in the intermediated security if:

  (a)   the transferee gives value for the interest (unless the interest acquired is itself a security interest); and

  (b)   the credit of the interest in the financial product in relation to which the intermediated security arises is made in accordance with a consensual transaction.

Exception

  (2)   Subsection   (1) does not apply if, at the time the interest is taken, the transferee has actual or constructive knowledge that crediting the interest in the financial product constitutes a breach of a security agreement that provides for a security interest in any intermediated security or financial product.