Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588fn:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588FN (pt 2/2)
Character Range: 2027185–2028879

be granted by the junior creditor to the senior creditor over the personal property or proceeds securing payment of the obligor's debt to the senior creditor;
 (d) the security interest is a security interest granted under the agreement, in the circumstances described in subparagraph (c)(iv).

Transfer of collateral subject to PPSA security interests
 (3) Subsection 588FL(4) (vesting of security interests in company) does not apply to a PPSA security interest if:
 (a) before the critical time that applies under section 588FL, the company acquired, by transfer, the collateral in which the PPSA security interest is granted; and
 (b) the company did not acquire the collateral free of the security interest; and
 (c) the security interest became perfected before the critical time; and
 (d) the security interest was continuously perfected by registration during a period covered by subsection (4) that begins before the critical time.
 (4) The period covered by this subsection:
 (a) begins at whichever of the following times is applicable:
 (i) in a case in which the secured party consented to the transfer—the end of 5 business days after the day of the transfer;
 (ii) in a case in which the secured party otherwise acquires the actual or constructive knowledge required to perfect the secured party's interest by registration (or to re‑perfect the interest by an amendment of a registration)—the end of 5 business days after the day the secured party acquires the knowledge; and
 (b) ends no earlier than at the critical time that applies under section 588FL.
Note: For what is actual or constructive knowledge, see sections 297 and 298 of the Personal Property Securities Act 2009.