Document ID: chunk:federal_register_of_legislation:C2024C00719:section:44
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 44
Character Range: 131138–132459

44  Taking personal property free of security interest if serial number incorrect or missing

Main rule
 (1) A buyer or lessee of personal property takes the personal property free of a security interest in the property if:
 (a) the regulations provide that personal property of that kind may, or must, be described by serial number in a registration; and
 (b) searching the register, immediately before the time of the sale or lease, by reference only to the serial number of the property, would not disclose a registration that perfected the security interest.

Exceptions
 (2) Subsection (1) does not apply if:
 (a) the buyer or lessee holds the personal property:
 (i) as inventory; or
 (ii) on behalf of a person who would hold the collateral as inventory; or
 (b) the security interest was created or provided for by a transaction to which the buyer or lessee is a party, unless the personal property concerned is of a kind prescribed by regulations for the purposes of this paragraph.
 (3) Within the period of 24 months after the registration commencement time, subsection (1) does not apply if the security interest is a transitional security interest, other than:
 (a) a migrated security interest in a motor vehicle; or
 (b) a migrated security interest in a watercraft within the meaning of the regulations.