Secured Transactions Act · 2022 Revised Edition · Part · Security Interests in Personal Property
18. Temporary perfection of security interests in negotiable instruments or investment securities
Official textFrom Attorney General's Chambers, unchanged
A security interest in a negotiable instrument or an investment security that is perfected by possession shall remain perfected within 10
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;
working days after the secured party made the negotiable instrument or investment security available to the debtor for the purposes of sale, exchange, presentation, collection, renewal or registration of a transfer.
secured party
“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);
Terms defined in s 3
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;
negotiable instrument
Defined · s 3“negotiable instrument” means — (a) a bill of exchange or promissory note within the meaning of the Bills of Exchange Act; or (b) any other writing that evidences a right to payment of money and is of a kind that, in the ordinary course of business, is transferred by delivery with any necessary endorsement, but does not include chattel paper, document of title or investment security;
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;
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;
Part 6
Part
Special Priority Rules
Part
Registration
Part
Enforcement of Security Interests
Part