12. Perfection of security interest

Terms defined in s 3

• cash proceeds

  cash proceeds

  Defined · s 3

  “cash proceeds” means proceeds in the form of money, cheques, drafts or deposit accounts in banks or similar institutions;

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• collateral

  collateral

  Defined · s 3

  “collateral” means personal property that is subject to a security interest;

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• financing statement

  financing statement

  Defined · s 3

  “financing statement” means forms in writing or their electronic equivalent as provided in the regulations on which information is provided in order to effect, amend, terminate or continue a registration;

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• investment security

  investment security

  Defined · s 3

  “investment security” means a writing, whether or not it is in the form of a security certificate, that is recognised in a place in which it is issued or dealt with as a warrant, option, share, right to participate, or other interest in property or an enterprise, or that evidences an obligation of the issuer, and that, in the ordinary course of business, is transferred by — (a) delivery with any necessary endorsement, assignment, or registration in the records of the issuer or agent of the issuer; (b) an entry in the records of a clearing house or central securities depository; (c) an entry in the records maintained for that purpose by or on behalf of the issuer; or (d) an entry in the records maintained for that purpose by or on behalf of the nominee, Secured Transactions but does not include a writing that evidences a monetary obligation that is secured by an interest in land;

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• possession

  possession

  Defined · s 3

  “possession”, in relation to a secured party, means possession of a collateral that is in the actual or apparent possession or control of the debtor or the debtor’s agent;

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• secured party

  secured party

  Defined · s 3

  “secured party” means a person in whose favour a security interest is created, including — (a) a consignor; (b) a financial lessor and a lessor who acquired goods under an operating lease; (c) a transferee of an intangible; (d) a seller who reserved title to the sold goods; or (e) a trustee or agent of the person referred to in paragraphs (a) to (d);

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• 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;

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