Document ID: chunk:federal_register_of_legislation:C2024C00719:section:263
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 263
Character Range: 414043–415873

263  When this Act prevails—formal requirements relating to agreements

Scope
 (1) This section applies if a law (the applicable law) of a State or Territory:
 (a) relates (whether expressly or by implication) to a security agreement for a security interest in collateral, or for an assignment (however described) of a security interest in collateral; and
 (b) has the effect of requiring the security agreement:
 (i) to be in a particular form; or
 (ii) to be witnessed or executed in a particular way; and
 (c) is prescribed by regulations made for the purposes of this section.
Example: A law of a State or Territory requires a security agreement to be in a particular form if the law requires the instrument evidencing the agreement to use a particular form of words, or to be executed on paper of a particular sort.
 (2) An assignment of a security interest mentioned in this section includes (but is not limited to) the following, however described in the applicable law:
 (a) the transfer of the security interest;
 (b) the giving of the security interest;
 (c) the devolution of the security interest from a deceased person to another person upon the death of the deceased.

Failure to comply with formal requirement under applicable law
 (3) Without limiting section 261 or 262, a failure to comply with the requirement under the applicable law does not:
 (a) affect the validity or enforceability of the security agreement; or
 (b) affect the validity, priority or enforceability of the security interest; or
 (c) affect the validity of the assignment (if relevant); or
 (d) otherwise limit the effect of the security agreement, the security interest or the assignment (if relevant).
Note: In other respects this Act is not intended to exclude or limit the concurrent operation of the applicable law (see section 254).