Secured Transactions Act · 2022 Revised Edition · Part · Special Priority Rules
41. Priority of interests on assignment of account receivable or non-negotiable chattel paper
Official textFrom Attorney General's Chambers, unchanged
The rights of an assignee of an account receivable or non-negotiable chattel paper shall be subject to —
account receivable
“account receivable” means a right to payment of a monetary obligation that is not evidenced by chattel paper, a negotiable instrument or an investment security, whether or not that obligation has been earned by performance;
the terms of the contract between the account debtor and the assignor and any defence or claim arising from the contract or a closely connected contract; and
any other defence or claim of the account debtor against the assignor (including a defence by way of a right of set-off) that accrues before the account debtor receives notification of the assignment.
In this section, “assignee” includes a transferee or other secured party.
secured party
“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);
Terms defined in s 3
account debtor
Defined · s 3“account debtor” means a person who is obligated under an account receivable or chattel paper;
account receivable
Defined · s 3“account receivable” means a right to payment of a monetary obligation that is not evidenced by chattel paper, a negotiable instrument or an investment security, whether or not that obligation has been earned by performance;
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;
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);
Part
Registration
Part
Enforcement of Security Interests
Part