PPSA - attachment Flashcards
A si must
attach to the collateral for teh secured party to take and sell the good to reapy their debt
40(1)
a si attaches to the collarteral when
- value is given by SP a
- debtor has rights in collateral b
- the sec agt is enforceable againts third parties within menaing of 36 c
40 1 a
value means consideration that is sufficient to support a simple contract and also includes pre-exsiting debt or laibiablity
- can be advanced as a loan
- coditional sale is possession of the good
40 1 b
debtor needs to have rights in
- wider concept than ownership
- possession is sufficient where a good is leased, consigned or sold to a debtor under codition sale agt 40(3)
43 - APAAP
- Sec agt may provide for SIs to attcah to proeprty that is acquired by the debtor in the future
specifci appropriation is
where property is specifically set aside or selecetd for a purpose
44 essentially says
APPAP that is consumer goods need to be specfically appropriated to the SA for an SI to attche to te colateral
-UNLESS it is an accession to consumer good already attached or replacement of a suymer good already attched (new laptop of the same kin)
16(3)
what category a good falls into depends on the use of the goods at the time of the sale
what are the three types of goods referred to in 16(3)
- consumer goods
- equiptment
- inventory
what are consumer goods
goods used or acquired foruse primarily for perosnal, domestioc or hosuehold purposes
what is equiptmnet
goods owned and used in the course of buiness
what is inventory
goods sold by a buiness, a shop that has to sell/anything used by a buiness that into the two above
