Movenlr PnorERry Sncuruw lNtnnssrs
Cap. L4:35
Acquis ition security interests in
No.9n0fi
ftngible s
18. An acquisition security interest in an asset extends to ttre fungible, and has
priority over a non-acquisition security interest granGd by the same debtor in the
fungibles with which the first-rrentioned asset is commingled.
Suborditntion
(l)
19.
A person may at any time subordinate the priority of his or her rights
under this Act in favour of any existing c future competing claimant without the need
for the beneficiary to be a party to the subordination.
(2) Subordination does not affect the rights of competing claimants other than
the person subodinating his or her priority and the bereficiary of the subordination.
Trantfereesofrcgotiableinstruments,fu:ds,money,
docunentsand
secunncs
20. (l) A consensual transferee of a negotiable instrument acquires its rights
fue of the security interest that is perfected by rcgistration of a notice in the Collateral
Regrstry if tbe consensual transferee(a) qualifies as a blder in due course rmder tb Bills of Exchange Lct[Clnpter
14:021;sr
(b) takes possession of the negotiable insrument and gives value wittnut
knowledge that the sale or other transfer is in violation of the rights of
the secured c.rpditc under the security agrceurent.
(2) A depositary institution's right to set off obligations owd to it by fte debtor
has priority as against a security interest in the right to payment of funds credited to
the deposit account.
(3) A transferee of funds from a deposit account pursuant to a mnsfer initiated
or authorised by the debtc acguires his or her rights ftree of a security interest in the
right to payrnent of funds sredited to the deposit account, unless the transferee has
knowledge that the transfer violates the rights of the secured crredior under the security
agreement.
(4) A transferee that obtains lnssession of money &at is subject to a security
interest acquires his or her rights free of the security intercst, unless that transferee has
knowledge that the transfer violates the rights of the secur€d creditor under ttrc security
agreement.
(5) Atransferce of a rcgotiable documerr who mkes possession of the negotiable
document and gives value without knowledge that the sale or other transfer is in
violation of the rigbts of the secued creditor under the security agreement, acquires
his or her rights fiiee of a security interest in the negotiable document and the tangible
assets covered thereby ttrat is perfected under this
Act.
(6) A transferee of securities who takes possession of the certificated secwity
or acquires rights ia an uncertificated mcurity and gives value without knowledge that
the sale or other transfer is in violation of the rights of the secured creditor under the
security agrcement acquircs his or herrights free of a security interest.
169
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