40. Priority of purchaser of negotiable instrument, document of title, chattel paper and security certificate

Terms defined in s 3

• chattel paper

  chattel paper

  Defined · s 3

  “chattel paper” means one or more writings that evidence both a monetary obligation and a security interest in, or lease of, specific goods or specific goods and accessions;

  Open s 3
• document of title

  document of title

  Defined · s 3

  “document of title” means a writing issued by or addressed to a bailee — (a) that covers goods in the possession of the bailee and are identified or are fungible portions of an identified mass; and (b) in which it is stated that the goods identified in it will be delivered to — (i) a named person, or to a transferee of that person; (ii) a bearer; or (iii) the order of a named person;

  Open s 3
• negotiable instrument

  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;

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• perfected security interest

  perfected security interest

  Defined · s 3

  “perfected security interest” means the security interest that has been created and becomes effective against third parties by control, possession, registration or temporarily, as the case may be;

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• possession

  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;

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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;

  Open s 3
• 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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• value

  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.

  Open s 3