Secured Transactions Act · 2022 Revised Edition · Part · Security Interests in Personal Property
15. Security interests in proceeds
Official textFrom Attorney General's Chambers, unchanged
Except as otherwise provided in this Act, a security interest in the collateral that is dealt with or otherwise gives rise to proceeds shall —
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;
continue in the collateral unless the secured party expressly or impliedly authorised the dealing; and
collateral
“collateral” means personal property that is subject to a security interest;
extend to the proceeds, but if the secured party enforces the security interest against both the collateral and the proceeds, the amount secured by security interest in collateral and the proceeds is limited to the value of the collateral at the date of the dealing that gave rise to the proceeds.
proceeds
“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;
Terms defined in s 3
collateral
Defined · s 3“collateral” means personal property that is subject to a security interest;
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;
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);
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;
value
Defined · s 3“value” means any consideration that is sufficient to support a simple contract, and includes an antecedent debt or liability and a binding commitment to provide future value.
Part 6
Part
Special Priority Rules
Part
Registration
Part
Enforcement of Security Interests
Part