Document ID: chunk:federal_register_of_legislation:C2024C00719:section:237
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 237
Character Range: 371248–372453

237  Express agreement
 (1) Despite sections 238, subsections 239(1) and (2) and section 240, the law of the Commonwealth (other than the law relating to conflict of laws) governs a security interest if:
 (a) the grantor is an Australian entity at the time the security interest attaches to the collateral; and
 (b) the security agreement that provides for the security interest expressly provides that the law of the Commonwealth, or that law as it applies in a particular State or Territory, governs the security interest.
 (2) However, a security agreement may not provide for the law of the Commonwealth, or that law as it applies in a particular State or Territory, to govern a security interest in the following intangible property:
 (a) an account;
 (b) a transfer of:
 (i) an account; or
 (ii) chattel paper;
 (c) intellectual property or an intellectual property licence.
Note 1: For the law that governs security interests in such kinds of intangible property, see section 239.
Note 2: The parties to a security agreement may provide that the law of the Commonwealth governs a security interest in an ADI account if it would not be manifestly contrary to public policy (see subsection 239(5)).