Reprint as at 6 June 2015

Coat of Arms of New Zealand

Personal Property Securities Act 1999

Public Act
 
1999 No 126
Date of assent
 
14 October 1999
Commencement
 
see section 1(2), (3)
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Business, Innovation, and Employment.

Contents

Title
1Short Title and commencement
2Purpose of this Part
3Status of this Part
4What this Act is about
5How Act arranged
6Part 2 (Preliminary provisions)
7Part 3 (Principles relating to enforceability of security interests)
8Part 4 (Attachment and perfection of security interests in particular kinds of personal property)
9Part 5 (When buyers or lessees of goods or other collateral take goods or other collateral free of unperfected security interests)
9APart 6 (Additional provisions relating to when buyers or lessees of motor vehicles take motor vehicles free of security interest)
10Part 7 (Priority between security interests)
11Part 8 (Priority of other interests in collateral)
12Part 9 (Enforcement of security interests)
13Part 10 (Personal property securities register)
14Part 11 (Miscellaneous)
15Part 12 (Transitional provisions)
16Interpretation
17Meaning of security interest
17ASubordinated trusts not security interests
18Meaning of possession in certain cases
19Meaning of knowledge
20Registration of financing statement not to constitute notice or knowledge
21Status of examples
22Act to bind the Crown
23When Act does not apply
23AAct subject to application of Cape Town Convention and Aircraft Protocol
24Application of Act not affected by secured party having title to collateral
25Rights or duties that apply to be exercised in good faith and in accordance with reasonable standards of commercial practice
26When New Zealand law applies
27Continuity of perfection where goods are moved to New Zealand
28Temporary perfection of security interest in collateral moved to New Zealand in other cases
29Location of debtor for purposes of sections 30 to 33
30Validity, perfection, etc, of security interests in intangibles, movable equipment, etc
31Position where debtor relocates to another jurisdiction, etc
32Position where no public record, etc, of perfection of security interest
33Validity, perfection, etc, of security interest in minerals
34Purpose of this Part
35Effectiveness of security agreement
36Enforceability of security agreements against third parties
37Description of collateral as consumer goods or equipment inadequate
38What constitutes adequate description of collateral held as inventory
39Description of proceeds not required for enforceability against third parties
40Attachment of security interests generally
41When security interest perfected
42Continuity of perfection where perfected security interest subsequently perfected in another way
43Security interests in after-acquired property
44Attachment of security interests in after-acquired property
45Continuation of security interests in proceeds
46When security interest in proceeds is continuously perfected
47Temporary perfection of security interests in proceeds in other cases
48Temporary perfection of security interest in negotiable instrument or investment security returned to debtor
49Temporary perfection of security interest in negotiable document of title or goods returned to debtor
50Perfection where goods in hands of bailee
51Security interests in crops
52Buyer or lessee of collateral takes collateral free of unperfected security interests
53Buyer or lessee of goods sold or leased in ordinary course of business takes goods free of certain security interests
54Buyer or lessee of consumer goods of certain value takes goods free of security interest
55When buyer or lessee of serial-numbered consumer goods or equipment takes consumer goods or equipment free of security interest perfected by registration
56When buyer or lessee of goods takes goods free of temporarily perfected security interests
57Interpretation
58Buyer or lessee of motor vehicle acquired from registered trader takes motor vehicle free of security interest
59Reimbursement of secured party by registered trader
60Reimbursement of secured party by fund [Repealed]
61Procedure for making claims for reimbursement
62Subrogation of rights of action against debtor and registered trader
63District Court Judge may declare certain persons responsible for repayment to registered trader
64Application of Companies Act 1993, etc, where dealer company in liquidation [Repealed]
65Secured party subrogated to rights of registered trader against buyer or lessee
66Priority of security interests in same collateral when Act provides no other way of determining priority
67Original method of perfection applies to continuously perfected security interest
68Time of registration, etc, of original collateral is also time of registration, etc, of proceeds
69Transfer of security interests does not affect priority
70Voluntary subordination of security interests
71Security agreement may provide for future advances
72Priority of security interest applies to all advances
73Priority of purchase money security interest in collateral or its proceeds, other than inventory or intangibles
74Priority of purchase money security interest in inventory or its proceeds
75Priority of purchase money security interest in intangible or its proceeds
75ANon-proceeds security interest in accounts receivable
76Priority between purchase money security interests in goods or their proceeds taken by seller, etc
77Priority between purchase money security interests in same goods or their proceeds not taken by seller, etc
78Security interests in accessions
79Priority of security interest in goods before they become accessions
80Certain interests in whole have priority over security interests in goods before they become accessions
81Certain interests have priority over security interests in goods that are not attached when goods become accession
82Continuation of security interests in goods that become part of processed or commingled goods
83Original method of perfection of goods applies to goods that become part of processed or commingled goods
84Limit on value of priority of goods that become part of processed or commingled goods
85Priority where more than 1 security interest continues in processed or commingled goods
86Priority of purchase money security interest in goods that continues in processed or commingled goods
87Rights of debtor may be transferred
88General priority of security interest in transferred collateral over security interests granted by transferee
89Transfer of debtor’s interest in collateral with prior consent of secured party
90Transfer of debtor’s interest in collateral where secured party has knowledge of certain information
91Transfer of debtor’s interest in collateral without secured party’s consent
92Prior security interest not subordinated
93Lien has priority over security interest relating to same goods
94When holder of money takes money free of perfected security interest in money
95Priority of creditor who receives payment of debt
96Priority of purchaser of negotiable instrument
97Priority of purchaser of investment security
98Priority of purchaser of chattel paper
99Priority of holder of negotiable document of title
100Lessor or mortgagee of land not affected by subsequent security interest in crops
101Perfected security interest in crops not prejudicially affected by subsequent sale, etc, of land
102Priority of interests on assignment of account receivable or chattel paper
103Execution creditor has priority over unperfected security interest
103APriority of interests of certain operators of designated settlement system
104Meaning of surplus
105Application of this Part
106Part not to apply to receivers
107When contracting out of certain provisions in this Part permitted
108Secured party may apply certain collateral in satisfaction of secured obligation
109Secured party may take possession of and sell collateral
110Duty of secured party selling collateral to obtain best price reasonably obtainable
110ANo defence or indemnity
111Apparent possession of certain collateral permitted in some cases
112Power of sale applies to document of title and related goods
113Methods of sale of collateral
114Notice of sale of collateral
115Extinguishment of subordinate security interests on sale
116Secured party to give statement of account to debtor, etc
116ASecured party selling collateral must pay prior ranking secured parties
117Distribution of surplus
118Surplus may be paid into court
119Debtor’s, etc, right to recover surplus
120Proposal of secured party to retain collateral
121Persons entitled to notice may object to proposal
122Person making objection may be requested by secured party to prove interest
123Position where persons entitled to notice do not object to retention of collateral by secured party
124Disposal of collateral to purchaser for value and in good faith
125Secured party must not damage goods when removing accession
126Person with interest in other goods entitled to reimbursement for damage caused by removal of accession
127Person entitled to reimbursement may refuse permission to remove accession
128Secured party may apply to court for order in respect of removal of accession
129Secured party must give notice of removal of accession
130When person with interest in whole may retain accession
131Court may make order concerning removal of accession
132Entitled persons may redeem collateral
133Debtor may reinstate security agreement
134Limit on reinstatement of security agreement
135Interpretation
136Appointment of Registrar
137Power of Registrar to delegate
138Registrar may refuse to provide certain services relating to register
139Personal property securities register
140Contents of register
141Person may register financing statement
142Data required to register financing statement
143When financing statement or financing change statement not to be registered
144When financing statement or financing change statement registered
145Verification statement to be forwarded to person who registered financing statement, etc
146When financing statement may be registered
147Financing statement may relate to 1 or more security agreements
148When secured party to notify debtor about registration of financing statement
149Registration of financing statement invalid only if seriously misleading
150When financing statement seriously misleading
151Proof that person actually misled not necessary
152Validity of registration when description of part of collateral is omitted
153Duration of registration of financing statement
154Renewal of registration
155Registration of financing change statement in respect of transfer of security interest perfected by registration
156Registration of financing statement in respect of transfer of security interest not perfected by registration
157When disclosure of transfer of security interest may be registered
158Transferee of security interest secured party for purposes of Act
159Registration of financing change statement in respect of subordinated security interest
160Voluntary amendment to or discharges of registrations of financing statements
161Discharge of registration relating only to consumer goods
162When debtor, etc, may demand registration of financing change statement
163Matters that may be required by demand
164Application of sections 165 to 167 in cases not involving security trust deeds
165Procedure where non-compliance with demand and no court order in cases not involving security trust deed
166Consequences of non-receipt, and receipt, of court order in cases not involving security trust deed
167Secured party may obtain court order in cases not involving security trust deed
167AFinancing change statement consequential on sale effected by court under certain enactments
168Procedure where non-compliance with demand and security trust deed involved
169No fee for compliance with demand
169ARestoration of registration
170Removal of data from register
170ACorrection of errors or omissions
171Search of register
172Search criteria
173Search purposes, etc
174When search constitutes interference with privacy of individual
175Printed search result receivable as evidence
176Entitlement to damages for breach of obligations
177Secured party to provide certain information relating to security interest
178Time for complying with request
179Exemption from complying with request
180Secured party may recover costs arising from request
181Application to court for compliance with request
182Consequences of not complying with court order
183Obligation to disclose successor in security interest when request made
184Application of sections 185 to 189
185Method of service of notices, etc
186Court may make order concerning service of notice, etc
187How to effect service of notice, etc, by post
188How to effect service of notice, etc, by facsimile
189How to effect service of notice, etc, by electronic mail
190Regulations
191Acts and regulations amended
192Repeals and revocations
193Interpretation
194Prior security interests continue to be enforceable against third parties during transitional period
195Prior registered security interests deemed to be perfected by registration during transitional period
196Certain other prior security interests deemed to be perfected during transitional period
197Prior security interests to be perfected during transitional period
198Consequences of not perfecting certain security interests
199Time of registration of certain prior security interests
200Priority of prior security interests during transitional period
201Priority of third party interests during transitional period
Reprint notes

An Act to reform the law relating to security interests in personal property and, in particular,—

(a)

to provide for the creation and enforceability of security interests in personal property; and

(b)

to provide for the determination of priority between security interests in the same personal property; and

(c)

to provide for the determination of priority between security interests and other types of interests in the same personal property; and

(d)

to provide for the enforcement of security interests in personal property other than consumer goods; and

(e)

to provide for the establishment of a register of security interests in personal property