Document ID: chunk:federal_register_of_legislation:C2013C00609:clause:1_588fl:p1
Version: federal_register_of_legislation:C2013C00609
Segment Type: clause
Provision Reference: sch 1 cl 588FL (pt 1/3)
Character Range: 68235–70913

588FL  Vesting of PPSA security interests if collateral not registered within time

Scope
 (1) This section applies if:
 (a) any of the following events occurs:
 (i) an order is made, or a resolution is passed, for the winding up of a company;
 (ii) an administrator of a company is appointed under section 436A, 436B or 436C;
 (iii) a company executes a deed of company arrangement under Part 5.3A; and
 (b) a PPSA security interest granted by the company in collateral is covered by subsection (2) or (3).
Note: A security interest granted by a company in relation to which paragraph (a) applies that is unperfected at the critical time may vest in the company under section 267 or 267A of the Personal Property Securities Act 2009.

Australian law governs security interest
 (2) This subsection covers a PPSA security interest if:
 (a) at the critical time, or, if the security interest arises after the critical time, when the security interest arises:
 (i) the security interest is enforceable against third parties under the law of Australia; and
 (ii) the security interest is perfected by registration, and by no other means; and
 (b) the registration time for the collateral is after the latest of the following times:
 (i) 6 months before the critical time;
 (ii) the time that is the end of 20 business days after the security agreement that gave rise to the security interest came into force, or the time that is the critical time, whichever time is earlier;
 (iii) if the security agreement giving rise to the security interest came into force under the law of a foreign jurisdiction, but the security interest first became enforceable against third parties under the law of Australia after the time that is 6 months before the critical time—the time that is the end of 56 days after the security interest became so enforceable, or the time that is the critical time, whichever time is earlier;
 (iv) a later time ordered by the Court under section 588FM.
Note 1: For the meaning of critical time, see subsection (7).
Note 2: For when a security interest is enforceable against third parties under the law of Australia, see section 20 of the Personal Property Securities Act 2009.
Note 3: A security interest may become perfected at a particular time by a registration that is made earlier than that time, if the security interest attaches to the collateral at the later time (after registration). See section 21 of the Personal Property Securities Act 2009.
Note 4: The Personal Property Securities Act 2009 provides for perfection by registration, possession or control, or by force of that Act (see section 21 of that Act).

Foreign law governs security interest