Document ID: chunk:federal_register_of_legislation:C2012C00169:clause:4_56
Version: federal_register_of_legislation:C2012C00169
Segment Type: clause
Provision Reference: sch 4 cl 56
Character Range: 65289–66521

56  Subsection 268(1)
Repeal the subsection, substitute:

   Security interests to which vesting rule does not apply

 (1) Subsection 267(2) (security interests vested in grantor) does not apply to the following security interests:
 (a) a security interest provided for by any of the following transactions, if the interest does not secure the payment or performance of an obligation:
 (i) a transfer of an account or chattel paper;
 (ii) a PPS lease, if paragraph (e) (serial numbered goods) of the definition of PPS lease in subsection 13(1) applies to the lease, and none of paragraphs (a) to (d) of that definition applies to the lease;
 (iii) a commercial consignment;
 (b) a security interest covered by subsection (2) of this section.

Example: An example of a security interest mentioned in subparagraph (a)(ii) is a PPS lease of goods that does not secure the payment or performance of an obligation, if:
               (a) the goods leased may or must be described by serial number in accordance with the regulations; and
               (b) the lease is for a term of between 90 days and 1 year; and
               (c) paragraphs (c) and (d) of the definition of PPS lease in subsection 13(1) do not apply to the lease.