Document ID: chunk:federal_register_of_legislation:C2024C00719:section:238
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 238
Character Range: 372453–374972

238  Governing laws—goods

Main rules
 (1) The validity of a security interest in goods is governed by the law of the jurisdiction (other than the law relating to conflict of laws) in which the goods are located when the security interest attaches, under that law, to the goods.
Note 1: Under section 237, the parties to a security agreement may expressly provide for the law of the Commonwealth to apply instead.
Note 2: For when personal property is located in a jurisdiction, see section 235.
 (1A) At a particular time, the perfection, and the effect of perfection or non‑perfection, of a security interest in goods is governed by the law of the jurisdiction (other than the law relating to the conflict of laws) in which the goods are located at that time.

Goods that are moved
 (2) Despite subsections (1) and (1A), the validity, perfection, and the effect of perfection or non‑perfection, of a security interest in goods is governed by the law of a particular jurisdiction (the destination jurisdiction), other than the law relating to the conflict of laws, if:
 (a) at the time (the attachment time) the security interest attaches, under that law, to the goods, it was reasonable to believe that the goods would be moved to the destination jurisdiction; and
 (b) the goods are currently located in the destination jurisdiction.
 (2A) Subsection (2) applies from the attachment time.

Goods that are normally moved between jurisdictions
 (3) Despite subsections (1) to (2A), the validity, perfection, and the effect of perfection or non‑perfection, of a security interest in goods is governed by the law of a jurisdiction (including the law relating to conflict of laws) if:
 (a) the grantor is located in that jurisdiction when the security interest attaches, under that law, to the goods; and
 (b) the goods are of a kind that is normally used in more than one jurisdiction; and
 (c) the goods are not used predominantly for personal, domestic or household purposes.
Note: For the location of bodies corporate, bodies politic and individuals, see section 235.

Goods entered on registers of ships
 (4) Despite subsections (1A) to (3), at a particular time, the perfection, and the effect of perfection or non‑perfection, of a security interest in goods is governed by the law of a country if:
 (a) the goods are entered in a register of ships maintained by the country containing the names and particulars of ships; and
 (b) in proceedings in the country, the law of that country governs title to the goods.