PPSA CASES Flashcards
JS BROOKSBANK - SI
MISTAKEN WOOL
anz had a perfected SI over APAAP at feltex - bankrput
anz want to claim wool that delevered to feltex mistakenly never paid for
the supply agt between F and B did not give rise to the transaction as it said delivery would happen AFTER payment so ANZ si overthe wool wasnt perfcted
BLOODSTOCK - 3rd
GM granted SI to L over APAPP - perfceted
GM in lease w BS (sa) for a horse
GM had rights in with the horse menaing that L could claim SI extended as they had APAAP and had a perfected SI
PORTCOM - 3rd
NDG got loan from HKSC in exchnage for a perfected SI over APAAP
NDG defaults and HKSC argue that portbale buildings leased from portacom were attcahed to SI
S16 - leases are deemed to create a SI so NDG had sufficent rights in the portcoms being leased and attched to HKSCs perfected SI APAAP
partners finance - priority
two SI in the same collateral
both were perfected and PF was first however had a seriously misleading FS, bulldozer as other and not serial number good/motor vehicle so asb took priority
grey v royal bank canada - priority
M defruads the owner and sells their caravan to H
H borrow $ from bank, reg SI over caravan
mere possession (nemo dat as seller was theif) was enough for rights in, but bank cannot enofrce si over true owner just third parties and H
CANADIAN - GIVE POLICY ARGUEMNETS IF THIS APPROACH TO POSSESSION AND TRUE OWNERS RIGHTS WOULD APPLY IN NZ
WHAT TO THINK ABOUT FOR GREY V ROYAL BANK
FOR NZ APPLICATIOJN
- effect on third parties who have got a si without knowing it subject to true owners rigthts
- 40(3) prov on possession sometimes amounting to rights in
- 17(1) transaction is a si regardless of the identity of the perosn who has title to the collateral
- brooksbank, mere possesion was not sufficinet to give rise to an si in the context of mistaken sale
orix - expect to perfect
o has perfected SI over 3 pavers owned by C
C sold paver to someone else
O wanted to claim the proceeds
sale was in the OCOB, had occurred in past. but wasnt frequent or in muisness model
orix - 2 step test
- what is the OCOB
- was the sale within the OCOB
Polymers International Limited v Toon
The debtor’s name is crucial for locating security interests (SI). Errors in the name can hide the SI in searches.
The Act is self-regulated, so accuracy is the secured party’s responsibility.
Held:
A wrong company serial number was a seriously misleading error.
Service Foods Manawatu Limited
Facts:
NZARFD supplied chilled goods to SFM and registered collateral as “all present and after-acquired property,” over-describing what the security agreement covered.
Obiter:
Errors in the debtor’s name or serial number that hide a financing statement in searches make registration seriously misleading.
Held:
Over-description isn’t seriously misleading since it doesn’t prevent finding the interest in the register.
evestan
- e had perfcteed SI over D traded in cars
- D car delaer and sold 13 cars to another dealer, used money to pay another creditor
- the selling of 13 cars was not within the OCOB, NO histiory of selling half his inventory, OCOB was selling to public and not selling to a friendly buyer to get $ for debts
stocko
- to get $ urgently, C sold 4000 heifers to S, and then leased them back
- cows were subject to a si prior now c is broke, bank wants cows
- was an usual sale, not OCOB, no bank SI over cows
- AFFIRMS ORIX, sellers cannot chnage OCOB to legitimise a sale
Spittlehouse v Northshore Marine Inc
P contracted to buy a boat, clearly in the ordinary course of the dealer’s business.
Issue:
Was Spittlehouse a “buyer” of goods “sold,” or just a party to an agreement to sell under the CCLA?
Held:
An agreement to sell counts as a sale.
“Buyer” includes anyone who believes they are purchasing something.
Terms should be interpreted broadly, including conditional sales.
petty john - tracing
-P original herd of cattle sold, proceeds were deposited into a bank account and automatically applied to pay down a loan
-after new cattle were purcahsedby withdrawing $ from the bank account, drawing down laon facility
- the new cattle were proceed of o.g. cattle and so SI could be asseretd over new cattle
- CLOSE AND SUBSTANTIAL CONNECTION between old and new cattle
