Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588fl:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588FL (pt 2/3)
Character Range: 2020649–2023336

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).

Vesting of security interest in company
 (4) The PPSA security interest vests in the company at the following time, unless the security interest is unaffected by this section because of section 588FN:
 (a) if the security interest first becomes enforceable against third parties at or before the critical time—immediately before the event mentioned in paragraph (1)(a);
 (b) if the security interest first becomes enforceable against third parties after the critical time—at the time it first becomes so enforceable.
Note: For the meaning of critical time, see subsection (7).

Property acquired for new value without knowledge
 (5) Subsection (4) does not affect the title of a person to personal property if:
 (a) the person acquires the personal property for new value from a secured party, from a person on behalf of a secured party, or from a receiver in the exercise of powers:
 (i) conferred by the security agreement providing for the security interest; or
 (ii) implied by the general law; and
 (b) at the time the person acquires the property, the person has no actual or constructive knowledge of the following (as the case requires):
 (i) the filing of an application for an order to wind up the company;
 (ii) the passing of a resolution to wind up the company;
 (iii) the appointment of an administrator of the company under section 436A, 436B or 436C;
 (iv) the execution of a deed of company arrangement by the company under Part 5.3A;
 (v) the appointment of a restructuring practitioner for the company under section 453B;
 (vi) the making of a restructuring plan by the company under Division 3 of Part 5.3B.
Note: For what is actual or constructive knowledge, see sections 297 and 298 of the Personal Property Securities Act 2009.
 (6) In a proceeding in Australia under this Act, the onus of proving the fact that a person acquires personal property without actual or constructive knowledge as mentioned in paragraph (5)(b) lies with the person asserting that fact.
 (7) In this section:
critical time, in relation to a company, means:
 (a) if the company is being wound up—when, on a day, the event occurs by virtue of which the winding up is taken to have begun or commenced on that day under section 513A or 513B; or
 (b) if