LAW 1509 Lecture Notes - Lecture 8: Chattel Mortgage, Security Interest, Personal Property
30 Jun 2018
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WEEK 8 PERSONAL PROPERTY SECURITIES
Definitions of Personal Property and Types of personal property s10 PPSA-
Collateral may include personal property described by registration of a security
interest regardless of whether the security interest has attached
Personal property as all property other than:
- land
- rights granted under Commonwealth, State or Territory
- declared by law not to be personal property under the act
Definitions of Security Interest s12 PPSA-
Interest in personal property through a transaction that secures payment or
performance of an obligation
A security interest in personal property may include:
- a fixed charge
- a floating charge
- a chattel mortgage
- conditional sale agreement/agreement to sell subject to retention of title
A security interest in personal property DOES NOT INCLUDE-
- a license
Consider only sections 10 and 12 PPSA: Mark is writing what he hopes will be a
bestselling novel. As it will not be his first success, his new bank agrees to give him an
overdraft facility to fund his six month retreat to the Gold Coast for inspiration. Mark
reaches a signed agreement with the bank that they ‘have a right to be repaid the overdraft
debt out of my forthcoming book royalties’. Advise the bank whether this is a PPSA
security interest as they want to know whether to register it.
Are book royalties personal property? s10 of the PPSA states that personal property is all
property other than land, rights granted under the Crown. Book royalties are not granted by
the Crown and are instead granted by the publisher. Therefore, under s10 of the PPSA
book royalties are personal property. The book royalties Mark gained are personal
property.
ISSUE- Are book royalties a valid security interest under the PPSA?
RULE-
1
Melissa Sparrow (a1668063)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Definitions of personal property and types of personal property s10 ppsa- Collateral may include personal property described by registration of a security interest regardless of whether the security interest has attached. Personal property as all property other than: land rights granted under commonwealth, state or territory declared by law not to be personal property under the act. Interest in personal property through a transaction that secures payment or performance of an obligation. A security interest in personal property may include: a fixed charge a floating charge a chattel mortgage conditional sale agreement/agreement to sell subject to retention of title. A security interest in personal property does not include- a license. Consider only sections 10 and 12 ppsa: mark is writing what he hopes will be a bestselling novel. As it will not be his first success, his new bank agrees to give him an overdraft facility to fund his six month retreat to the gold coast for inspiration.
