Document ID: chunk:federal_register_of_legislation:C2024C00719:section:53
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 53
Character Range: 140864–141911

53  Rights of secured party and transferee on taking personal property free of security interest

Scope
 (1) This section applies if:
 (a) a person (the transferee) acquires personal property from another person (the transferor); and
 (b) as a result, the transferee takes the personal property, or an accession to the property, free of a secured party's security interest because of the operation of this Part.

Rights of secured party
 (2) The rights of the secured party are subrogated, in relation to the property, to the rights (if any) of the transferor and any predecessor of the transferor (including the right to receive any part of the purchase price for the property which has not been paid).

Rights of transferee
 (3) If a person who is liable to pay the purchase price of personal property makes a payment before receiving notice of a secured party's right under subsection (2), the payment discharges the obligation of the person to the extent of the payment.

Part 2.6—Priority between security interests

Division 1—Introduction