Secured Transactions Act · 2022 Revised Edition · Part · Security Agreements
11. Description of collateral in security agreement
Official textFrom Attorney General's Chambers, unchanged
A security agreement is enforceable and a security interest created in respect of the collateral only if —
security agreement
“security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;
a security agreement contains an adequate description of the collateral, which description may be generic or specific; and
(deleted by S 76/2016);
the debtor has rights in the collateral.
A description of the collateral is adequate if the collateral is described by —
collateral
“collateral” means personal property that is subject to a security interest;
item, kind, type or category;
a statement that a security interest is taken in all of the debtor’s present and after-acquired property; or
a statement that a security interest is taken in all of the debtor’s present and after-acquired property except for specified items or kinds of personal property.
For the purposes of subsection (2), a description of the collateral is inadequate if the collateral is described as consumer goods without specific reference to the item or kind of collateral.
consumer goods
“consumer goods” means goods that are used or acquired for use primarily for personal, domestic or household purpose;
Except as otherwise provided in this Act, a security interest in proceeds is enforceable against a third party, whether or not the security agreement providing for the security interest contains a description of the proceeds.
security interest
“security interest” means a property right in personal property that is created by agreement and secures payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and includes the right of a seller in an instalment sale or a sale with retained title, but it does not include a personal right against a guarantor or other person liable for the payment of the secured obligation;
Secured Transactions 20
Terms defined in s 3
after-acquired property
Defined · s 3“after-acquired property” means personal property that is acquired by a debtor after the security agreement is made;
collateral
Defined · s 3“collateral” means personal property that is subject to a security interest;
consumer goods
Defined · s 3“consumer goods” means goods that are used or acquired for use primarily for personal, domestic or household purpose;
personal property
Defined · s 3“personal property” includes goods, chattel paper, documents of title, intangibles, investment securities, money and negotiable instruments;
proceeds
Defined · s 3“proceeds” means identifiable or traceable personal property received as a result of sale, other disposition, collection, lease or licence of the collateral, including proceeds of proceeds, civil and natural fruits, dividends, distributions, insurance or takaful proceeds and claims arising from defects in, damage to or loss of collateral;
security agreement
Defined · s 3“security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;
security interest
Defined · s 3“security interest” means a property right in personal property that is created by agreement and secures payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and includes the right of a seller in an instalment sale or a sale with retained title, but it does not include a personal right against a guarantor or other person liable for the payment of the secured obligation;
Part
Perfection of Security Interests
Part
Security Interests in Personal Property
Part 6
Part
Special Priority Rules
Part
Registration
Part
Enforcement of Security Interests
Part