Document ID: chunk:federal_register_of_legislation:C2024C00719:section:79
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 79
Character Range: 175237–176025

79  Transfer of collateral despite prohibition in security agreement
 (1) If collateral would be able to be transferred (including by sale, by creating a security interest or under proceedings to enforce a judgment) but for a provision in a security agreement prohibiting the transfer or declaring the transfer to be a default, the collateral may be transferred, despite the provision:
 (a) by consent between the grantor and the transferee; or
 (b) by operation of law.
Note: See section 32 in relation to security interests in proceeds that arise as a result of a transfer.
 (2) A transfer mentioned in subsection (1) does not prejudice the rights of the secured party under the security agreement or otherwise, including the right to treat a prohibited transfer as an act of default.