Document ID: chunk:federal_register_of_legislation:C2013C00609:clause:2_321
Version: federal_register_of_legislation:C2013C00609
Segment Type: clause
Provision Reference: sch 2 cl 321
Character Range: 142310–143460

321  Attachment rule
  For the purposes of subparagraph 21(1)(b)(i) and section 55, a transitional security interest in collateral is taken to have attached to the collateral immediately before the registration commencement time, whether the security interest arises before, at or after the registration commencement time.
Note 1: Subparagraph 21(1)(b)(i) provides that unless a security interest in collateral is perfected by force of this Act, the security interest must have attached to the collateral in order to be perfected.
Note 2: Section 55 provides for the default rules for determining priority between security interests in the same collateral. In some cases, these rules depend on when a security interest attaches. For example, the priority between 2 unperfected security interests is generally determined by their order of attachment (see subsection 55(2)).
However, 2 unperfected transitional security interests have the priority they would have had between themselves if this Act had not been enacted (see section 323).
Note 3: See section 320 for a general summary of priority rules as they affect transitional security interests.