Secured Transactions Act · 2022 Revised Edition · Part · Enforcement of Security Interests
66. Collateral at risk
Official textFrom Attorney General's Chambers, unchanged
Notwithstanding section 63, a secured party may take possession of the collateral, with or without leave of the Court, and sell the collateral when —
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);
the debtor is in default under the security agreement; and
the collateral is at risk.
In subsection (1), collateral is at risk if the secured party has reasonable grounds to believe that the collateral has been or will be destroyed, damaged, endangered, disassembled, removed, concealed, sold or otherwise disposed of contrary to the provisions of the security agreement.
collateral
“collateral” means personal property that is subject to a security interest;
Terms defined in s 3
collateral
Defined · s 3“collateral” means personal property that is subject to a security interest;
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;
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;
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);
security agreement
Defined · s 3“security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;
Part