34. Rights of debtor may be transferred

Terms defined in s 3

• collateral

  collateral

  Defined · s 3

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

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• default

  default

  Defined · s 3

  “default” means — (a) the failure to pay or otherwise perform the obligation secured when due; or (b) the occurrence of an event that, under a security agreement, gives a secured party the right to enforce a security interest;

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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 agreement

  security agreement

  Defined · s 3

  “security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;

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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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