Document ID: chunk:federal_register_of_legislation:C2024C00719:section:57
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 57
Character Range: 147621–148862

57  Priority of security interests perfected by control

Priority interests
 (1) A security interest in collateral that is currently perfected by control has priority over a security interest in the same collateral that is currently perfected by another means.
Note: Only security interests in certain kinds of property can be perfected by control (see paragraph 21(2)(c) and Part 2.3).
 (2) Priority between 2 or more security interests in collateral that are currently perfected by control is to be determined by the order in which the interests were perfected by control (where the perfection by control has been continuous).
 (2A) A perfected security interest (the priority interest) in the proceeds of original collateral has priority over any other security interest in the proceeds, except a security interest in the proceeds as original collateral that is perfected by control, if:
 (a) the security interest in the first‑mentioned original collateral was perfected by control when the collateral gave rise to proceeds; and
 (b) the priority interest is not perfected by control.

Control priority takes precedence over any other priority rule
 (3) This section applies despite the application of any other provision of this Part.