Secured Transactions Act · 2022 Revised Edition · Part · Preliminary
2. Application of Act
Official textFrom Attorney General's Chambers, unchanged
Subject to subsection (2), this Act applies to —
liens created by judgment or by operation of the law;
every transaction that in substance creates security interests, without regard to its form and without regard to the person who has title to the collateral, including —
conditional sale agreements (including agreements to sell subject to retention of title);
hire-purchase agreements;
consignments;
operating and financial leases; and
outright assignments of intangibles.
This Act does not apply to —
any right of set-off whether or not arising under or from financial contracts governed by netting agreements; or
Secured Transactions 10
an interest created or provided for by any of the following transactions —
the creation or transfer of an interest in land;
a transfer of a right to payment that arises in connection with an interest in land, including a transfer of rental payments payable under a lease of or licence to occupy land, unless the right to payment is evidenced by an investment security;
a transfer of present or future claim to wages, salary, pay, commission or any other compensation for labour or personal services of an employee;
an assignment for the general benefit of creditors of the person making the assignment;
a transfer of an interest or claim in or under a contract of annuity or life policy of insurance or takaful;
a transfer of a right to damages in tort not related to commercial activity;
(deleted by S 76/2016);
a transfer or mortgage in a licence, concession or other personal privilege issued or granted under any other written law for which a security interest is prohibited.
Terms defined in s 3
collateral
Defined · s 3“collateral” means personal property that is subject to a security interest;
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;
land
Defined · s 3“land” includes all estates and interests, whether freehold or leasehold, in real property;
purchase
Defined · s 3“purchase” means taking by sale, lease, discount, assignment, negotiation, mortgage, pledge, lien, issue, reissue, gift or any other consensual transaction that creates an interest in personal property;
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
Administration
Part
Security Agreements
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