Document ID: chunk:federal_register_of_legislation:C2024C00719:section:241
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 241
Character Range: 380617–381862

241  Governing laws—proceeds
 (1) The validity of a security interest in proceeds is governed by the law of the jurisdiction (other than the law relating to conflict of laws) that governed the validity of the security interest in the collateral that gave rise to the proceeds.
 (2) The perfection, and the effect of perfection or non‑perfection, of a security interest in proceeds is governed by the law of the jurisdiction (other than the law relating to conflict of laws) that governed the perfection, and the effect of perfection or non‑perfection, of the security interest in the collateral that gave rise to the proceeds.
 (3) This section applies despite any other provision of this Part.
 (4) However, this section does not apply in relation to proceeds that are an account unless the account arises from the dealing that gave rise to the proceeds.
Note: If this section does not apply in relation to proceeds that are an account, the law governing the validity and the perfection of a security interest consisting of a transfer of the account is determined by the law of the jurisdiction in which the grantor is located (see section 239 (governing laws—intangible property)).

Part 7.3—Constitutional operation

Division 1—Introduction