“related company has the same meaning as in section 2(3) of the Companies Act 1993”.

“17A Subordinated trusts not security interests

• For the avoidance of doubt, a beneficial interest in personal property held by a creditor (the senior creditor) of a person who has been adjudged bankrupt or put into liquidation (the insolvent debtor) is not a security interest if—

  • “(a) the personal property is property that has been distributed by the Official Assignee under the Insolvency Act 1967 or by a liquidator under the Companies Act 1993 to another creditor of the insolvent debtor (the subordinated creditor); and

  • “(b) the beneficial interest was created or provided for under the terms of a security (as defined in section 2D of the Securities Act 1978) that is held by the subordinated creditor; and

  • “(c) under those terms, the subordinated creditor must hold the personal property on trust for the senior creditor; and

  • “(d) the purpose of those terms is to postpone or subordinate the right of the subordinated creditor to the performance of all or any part of an obligation of the insolvent debtor to the right of the senior creditor to the performance of all or any part of another obligation of the insolvent debtor.”

• “(c) a government department knows or has knowledge of a fact in relation to a particular transaction when that fact has been brought to the attention of a senior employee of the government department with responsibility for the matters to which the fact relates, under circumstances in which a reasonable person would take cognisance of it.”

• “(3) For the purposes of this section,—

  “government department means an entity named in Part 1 of Schedule 1 of the Ombudsmen Act 1975

  “organisation does not include a government department.”

“75A Non-proceeds security interest in accounts receivable

• “(1) A non-proceeds security interest in accounts receivable that is given for new value has priority over a purchase money security interest in the accounts receivable as proceeds of inventory if a financing statement relating to the security interest in the accounts receivable is registered before the purchase money security interest is perfected or a financing statement relating to it is registered.

  “(2) In this section, non-proceeds security interest means a security interest in original collateral.

  “(3) Sections 73 to 75 are subject to this section.

  “Compare: Personal Property Security Act 1993, s 34(6), (7) (Saskatchewan)”.

• “(1A) In this section, time of execution means,—

  • “(a) if the collateral is seized by an execution creditor or on an execution creditor's behalf, the time of seizure; or

  • “(b) in any other case, the time when a charging order or a garnishee order is made.”

• “(2) Subsection (1) does not limit section 149.”

“169A Restoration of registration

• “(1) The Registrar may restore a registration if it appears to the Registrar that, due to a clerical error made by the Registrar, the registration has been incorrectly discharged or removed.

  “(2) A registration restored under subsection (1) must be regarded as having continued in force throughout the period during which it was incorrectly discharged or removed as if it had not been so discharged or removed.”

“Removal of data from register and correction of errors or omissions

“170 Removal of data from register

• “(1) Data in a registration may be removed from the register—

  • “(a) when the registration is no longer effective; or

  • “(b) on the registration of a financing change statement discharging or partially discharging the registration; or

  • “(c) if the Registrar is satisfied that the data is frivolous or vexatious.

  “(2) The Registrar must, before he or she makes a decision under subsection (1)(c), give the secured party notice to show cause, within 10 working days of the date on which the notice is given, why the data is not frivolous or vexatious.

  “(3) If the secured party fails within 10 working days of the date on which the notice is given to show cause to the Registrar's satisfaction why the data is not frivolous or vexatious, the Registrar may, in the Registrar's discretion, remove the data from the register.

  “(4) If data is removed from the register under subsection (1)(c), the Court may, on the application of the secured party, make an order directing that the data be restored to the register if it is satisfied that the data is neither frivolous nor vexatious.

  “(5) The Court may make any other orders that it thinks proper for the purpose of giving effect to an order under subsection (4).

  “(6) The Registrar must restore the data to the register in accordance with a court order made under subsection (4) as soon as reasonably practicable after receiving the order.

  “Compare: Personal Property Security Act 1993, s 46 (New Brunswick)

“170A Correction of errors or omissions

• The Registrar may, with the consent of the secured party, correct any clerical error or omission made by the Registrar in a registration.”

• “(iia) establishing whether to provide credit to, or to obtain a guarantee or an indemnity from, a related company of the company named in the search or of the company with an interest in the personal property described in the search:”.

• “(iv) establishing whether to invest in, with, or through, a related company of the company named in the search or of the company with an interest in the personal property described in the search:”.

• “(2) If a prior security interest that is deemed to be an unperfected security interest under subsection (1) is perfected after the close of the transitional period, that perfection is only effective from the time of that perfection.”