Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies to a security interest (the priority interest ) in an account, financial property or an intermediated security if the law of the jurisdiction that governs the perfection, and the effect of perfection or non - perfection, of the priority interest does not provide for the public registration or recording of the priority interest, or a notice relating to the priority interest.
Note: For when laws of other jurisdictions govern a security interest, see Part 7.2.
Security interests in accounts
(2) A priority interest in an account has priority, in proceedings in an Australian court, over another interest in the account (whether or not the other interest is a security interest) if the priority interest is perfected by registration under this Act before the other interest attaches to the account.
Security interests in financial property and intermediated securities
(3) A priority interest in personal property that is financial property or an intermediated security has priority, in proceedings in an Australian court, over another interest in the personal property (whether or not the other interest is a security interest) if:
(a) the priority interest is perfected by registration under this Act before the other interest attaches to the personal property; and
(b) when the other interest arises in the personal property:
(i) the personal property is located in Australia; and
(ii) the secured party does not have possession or control of the personal property.
Note: For when personal property is located in a jurisdiction, see section 235.
Relationship with sections 239 and 240
(4) Subsections (2) and (3) apply in proceedings in an Australian court even if the law of another jurisdiction applies in the proceedings in relation to a security interest in an account or financial property under subsection 239(2) or 240(4) or (5).