Secured Transactions Act · 2022 Revised Edition · Part · Special Priority Rules
37. Lien has priority over security interests relating to same goods
Official textFrom Attorney General's Chambers, unchanged
A possessory lien arising out of materials or services provided in respect of goods that are subject to a security interest in the same goods shall have priority over that security interest if —
goods
“goods” means tangible personal property and include farm products, inventory, equipment, consumer goods, trees that have been severed, and petroleum or minerals that have been extracted, but does not include chattel paper, document of title, negotiable instrument, investment security or money;
the materials or services relating to the lien were provided in the ordinary course of business;
the lien has not arisen under any written law that provides that the lien does not have the priority; and
the person who provided the materials or services did not, at the time the person provided those materials or services, know that the security agreement relating to the goods contained a provision prohibiting the creation of a lien by the debtor.
security agreement
“security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;
Terms defined in s 3
goods
Defined · s 3“goods” means tangible personal property and include farm products, inventory, equipment, consumer goods, trees that have been severed, and petroleum or minerals that have been extracted, but does not include chattel paper, document of title, negotiable instrument, investment security or money;
security agreement
Defined · s 3“security agreement” means an agreement between the debtor and secured party that creates or provides for a 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;
Part
Registration
Part
Enforcement of Security Interests
Part