Secured Transactions Act · 2022 Revised Edition · Part · Enforcement of Security Interests
71. Notice of sale of collateral
Official textFrom Attorney General's Chambers, unchanged
A secured party who intends to sell the collateral under section 66 shall, within 10 working days before selling the collateral, give notice to the persons referred to in section 68.
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);
Subsection (1) does not apply if —
the collateral may perish within 10 working days of the repossession;
the secured party believes on reasonable grounds that the collateral will decline substantially in value if it is not disposed of immediately;
the cost of care, maintenance and storage of the collateral is disproportionately large in relation to its value;
Secured Transactions
the collateral consists of inventory;
the security interest comprises all, or substantially all, of the assets of the debtor that is a company;
after the secured party repossesses the collateral, every person entitled to receive notice under subsection (1) consents in writing to the immediate sale of the collateral; or
a Court grants leave to the secured party to sell collateral under section 66 without complying with subsection (1).
Where a security interest extends to the collateral and some of which is as described in subsection (2), the secured party may sell the collateral without complying with subsection (1).
security interest
“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;
Terms defined in s 3
collateral
Defined · s 3“collateral” means personal property that is subject to a security interest;
inventory
Defined · s 3“inventory” means goods that are — (a) held by a person for sale or lease, or that have been leased by the person as lessor; (b) to be provided or have been provided under a contract for services; (c) raw materials or work in progress; or (d) materials used or consumed in a business;
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 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;
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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