30B Priorities on distribution by receiver of surplus representing proceeds of personal property

(1)

A surplus representing the proceeds of personal property must be distributed in the following order:

(a)

to any person who has registered a financing statement under the Personal Property Securities Act 1999, or a security interest under any other Act, in the name of the grantor over the property, if—

(i)

the registration was effective immediately before the receiver disposed of the property; and

(ii)

the security interest relating to that registration was subordinate to the security interest of the person in whose interests the receiver was appointed:

(b)

to any other person (A), if the receiver has notice that A had an interest in the property when it was disposed of, and the receiver is satisfied that A’s interest was legally enforceable:

(c)

to the grantor.

(2)

Priority as between persons referred to in subsection (1)(a), and as between persons referred to in subsection (1)(b), must be determined according to the applicable law (including Part 7 or Part 8 of the Personal Property Securities Act 1999) as if, in the case of persons referred to in subsection (1)(a), their security interests had not been extinguished.

(3)

If, in the case of a distribution of the surplus to a grantor, the grantor cannot be found after reasonable inquiry by the receiver, the provisions of section 186(2) to (5) of the Property Law Act 2007 apply with all necessary modifications as if references in that section to “the mortgagee” and “the mortgagor” were references to “the receiver” and “the grantor” respectively.

Section 30B: inserted, on 15 December 2005 (applying to any surplus referred to in this provision that has not been distributed on that date), by section 4 of the Receiverships Amendment Act 2005 (2005 No 112).

Section 30B(3): amended, on 1 January 2008, by section 364(1) of the Property Law Act 2007 (2007 No 91).