Document ID: chunk:federal_register_of_legislation:C2024C00719:section:55
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 55
Character Range: 145062–147005

55  Default priority rules
 (1) This section sets out the priority between security interests in the same collateral if this Act provides no other way of determining that priority.
Note: For other rules about priorities, see the following:
(a) the remaining provisions of this Part;
(b) Chapter 3 (agricultural interests, accessions and commingling);
(c) Part 9.4 (transitional application of this Act).

Priority between unperfected security interests
 (2) Priority between unperfected security interests in the same collateral is to be determined by the order of attachment of the security interests.

Perfected security interest has priority over unperfected security interest
 (3) A perfected security interest in collateral has priority over an unperfected security interest in the same collateral.

Priority for perfection in other ways
 (4) Priority between 2 or more security interests in collateral that are currently perfected is to be determined by the order in which the priority time (see subsection (5)) for each security interest occurs.
 (5) For the purposes of subsection (4), the priority time for a security interest in collateral is, subject to subsection (6), the earliest of the following times to occur in relation to the security interest:
 (a) the registration time for the collateral;
 (b) the time the secured party, or another person on behalf of the secured party, first perfects the security interest by taking possession or control of the collateral;
 (c) the time the security interest is temporarily perfected, or otherwise perfected, by force of this Act.
 (6) A time is a priority time for a security interest only if, once the security interest is perfected at or after that time, the security interest remains continuously perfected.
Note: A security interest in the proceeds of original collateral has the same default priority as the security interest in the original collateral (see subsection 32(5)).