Secured Transactions Act · s 36

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s 36Transfer of debtor’s interest in collateral with prior consent of secured party

(1)

If a security interest is perfected by registration and the debtor transfers all or part of its interest in the collateral, the security interest in the transferred collateral shall remain perfected against such collateral and, if the security interest extends to after-acquired property, the security interest in the transferred collateral shall remain perfected against any collateral that the transferee acquires within 15 days.

(2)

The security interest shall not be perfected with respect to the collateral acquired by the transferee after the expiration of the 15 day period unless the secured party registers a financing statement naming the transferee as the debtor.

Secured Transactions 28