Document ID: chunk:federal_register_of_legislation:C2024C00719:section:262
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 262
Character Range: 412331–414043

262  When this Act prevails—assignment requirements

Scope
 (1) This section applies if a law (the applicable law) of a State or Territory has the effect of requiring or enabling a person to register the assignment of a security interest.
 (2) For the purposes of this section, a person registers the assignment of a security interest under an applicable law if, under (or in accordance with) that law, the person registers, or otherwise discloses, any of the following in relation to a security interest that is (or is to be) assigned, however the assignment is described in that law:
 (a) the assignment;
 (b) a security agreement providing for the assignment;
 (c) collateral covered (or to be covered) by the security interest.
 (3) An assignment of a security interest mentioned in this section includes (but is not limited to) the following, however described in the applicable law:
 (a) the transfer of the security interest;
 (b) the creation of the security interest;
 (c) the devolution of the security interest from a deceased person to another person upon the death of the deceased person.

Failure to register under applicable law
 (4) A failure to register the assignment of the security interest under the applicable law does not:
 (a) affect the validity of the assignment; or
 (b) affect the validity, priority or enforceability of the security interest, or of a security agreement providing for the security interest; or
 (c) otherwise limit the effect of the assignment, the security interest or of a security agreement providing for the security interest.
Note: In other respects this Act is not intended to exclude or limit the concurrent operation of the applicable law (see section 254).