New Zealand Legislation: Acts

25 Rights or duties that apply to be exercised in good faith and in accordance with reasonable standards of commercial practice

• (1) All rights, duties, or obligations that arise under a security agreement or this Act must be exercised or discharged in good faith and in accordance with reasonable standards of commercial practice.

  (2) A person does not act in bad faith merely because the person acts with knowledge of the interest of some other person.

  Compare: Personal Property Security Act 1993 s 65(3), (4) (Saskatchewan)

  Section 25 heading: amended, on 15 April 2004, by section 9 of the Personal Property Securities Amendment Act 2004 (2004 No 30).