43. Buyer or lessee takes collateral free of unperfected security interests

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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• 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.

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