PPSA - exceptions to perfection

Question 1

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what is s54

Answer 1

sales of law value consumer goods acqured as conusmer goods

Question 2

what is the detial of s54

Answer 2

a buyer or lessess of consumer goods takes them free of any si if
- value doenst exeed 2000 at time of attchememt
- buyer or lease gave new value
- buyer or lease had no knowldge of the si (actual 19, regardless of fs 20)

Question 3

what is s45

Answer 3

sales authorised by the SP

Question 4

explain s45s details

Answer 4

a si will continue in the collateral, unless the SP expressely or impliedyly authorise the delaing

Question 5

S45 CASE

Answer 5

Gibson v stocko
- where the SP is aware of the specific dealing or previous dealings of the same type e.g. sells goods to a retailr knowing they will b sold to the public

Question 6

what is s53

Answer 6

sales and leases conducted in the OCOB

Question 7

EXPLAIN the dteails of s53

Answer 7

• a buyer or lesssee of goods sold or leased in the OCOB of the sllers or lessors buisness, takes the gods free of any perfceted SI, unless the buyer knows the sale is a breach of the security agreement
• INCLUDES AGT TO SELL, to innconet buyer, technical differecne doenst matter (spittlehosue)

Question 8

s53 cases

Answer 8

• orix
• evestan
• stocko too

Question 9

orix

Answer 9

o had perfected si over three pavers owned by c, c sold paver and o wanted to claim proceeds, sale was in OCOB even tho infrequnt

Question 10

orix 2 step test

Answer 10

1. what is the ordinary OCOB
2. is the sale within the OCOB

Question 11

evestan

Answer 11

e had a perfeced si over d traded in cars, d is a dealer who sold 13 cars to pay debt, the sale was not within thE OCOB, no history of selling half inventory of cars and was usually selling to the public and not a freind to help raise funds to pay off debt

Question 12

stocko

Answer 12

• crafar sold 4,000 cows to s and s leased back, cows were subjet to a perfected si and bank wants them back
• well out of teh OCOB, would usually sell off some cows but not to this extent, and was out of the OCOC to produce and sell milk
• AFFIRMS ORIX 2 STEP TEST

Question 13

WHAT is s55

Answer 13

sales of incorretly described goods

Question 14

descirbe and exlain s55

Answer 14

a buyer or lessee of goods that are acquired as consumer goods or equiptment takes them free of a SI perfected by registartion if
- buyer has no knowldegs of the si
- goods are required to be described by a serial number (motor v, aircraft)
- serial number is not correctly described in the FS