Secured Transactions Act · 2022 Revised Edition · Part 6
27. Non-proceeds security interests in accounts receivable
Official textFrom Attorney General's Chambers, unchanged
A security interest in accounts receivable that is given for new value shall have priority over a purchase money security interest in the accounts receivable as proceeds of inventory if the security interest in the accounts receivable is registered before the purchase money security interest in the inventory.
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;
In this section, “new value” means value other than antecedent debt or liability.
value
“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.
Priority of security interests in accessions
Terms defined in s 3
inventory
Defined · s 3“inventory” means goods that are — (a) held by a person for sale or lease, or that have been leased by the person as lessor; (b) to be provided or have been provided under a contract for services; (c) raw materials or work in progress; or (d) materials used or consumed in a business;
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;
purchase money security interest
Defined · s 3“purchase money security interest” means — (a) a security interest taken in collateral by a seller that secures the obligation to pay any unpaid portion of the purchase price of the collateral; (b) a security interest taken in collateral by a person who gives value for the purpose of enabling the debtor to acquire rights in the collateral, to the extent that the value is applied to acquire those rights; (c) the interest of a financial lessor or a lessor of goods under a lease for a term of more than one year; or (d) the interest of a consignor who delivers goods to a consignee under a commercial consignment, but does not include a transaction of sale and lease back to the seller;
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
Special Priority Rules
Part
Registration
Part
Enforcement of Security Interests
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