No.9l20l7 Cap. 14:35 Moveem Pnopnnry Srcunmv h.rrnnnsm Rights of non-conseruual creditors (1) The right of a non+onsensual creditor has priority over 14. a security interest has registered if, beforc the security interest is perfected, the non-consersual creditor in the Collateral Registy. a notice (2) If a security interest is perfected before the mn-consensual creditor registers in the Collateral Registry, tbe security interest has pnodty but that priuity is limited o $edit extended by the secuted seditona notice (a) within tbirty wo*ing days from the time the secured cr,edito received a notifcation from the non-consen$ual creditor that the nou-consensual credits has registered a notice in the Collateral Registry; or (b) pursuatrt to an inevocable commitnpnt in a fixed amount or an arnount to be fixed pursuaot to a specified formula of the secured crcditor to extend credit, if the commitment was made before the swured credior received a notification from the non-consensuat crpditor that tbe non-consensual creditor had register€d a notice. (3) A possessory lien on goods which secures payment or perforrnance of an obligation for sewices or materials furnished with respmt to goods by a person in the ordinary course of the person's busiress has priority over a security interest in the goods as long as tbe holder of the possessory lien remails in possession of the goods. Non-rcqnisirton security irxerests competing with acquisition secarity intelsts 15. An acquisition security intsest in consuurer goods, eguipment, inven0ory, or intellectual property has priority over a competiag non-acquisition security interest created by the debtor: hovided that a notice with respect to the acquisition security interest is registered in the Collateral Registry before ttre debtor obtains poasession of the asset or acquires a right in intellectual property. Competing acquisition security interests 16. (l) Subject to subparagraph (2), the pnority betrveen competing acquisition srcurity interests is determined in accordance with paragraph 7. (2) An acquisition security interest of a seller or financial lessor has priority over competing acquisition security interest of a secured creditor other than a seller or financial lessor. a Acquisition security interests in proceeds (t) 17. In the case of an acquisition security intenest in equipment, a security proceeds has the same priority as the acquisition security interest. interest in property (2) In the case of an acquisition security interest in inventory or intellectual a secwity interest in proceeds has the same priority as the acquisition security interest, excqrt where the p'roceeds take the form of rpceivables , negotiable insmlrrcnt$ , orrights to payment of frrnds credited to a deposit account. (3) The pricity of a security interest in proceeds refensd to in subparagraph (2) is conditional on the acquisition secured creditor notifying non-acquisition secured creditors with a security interest in the same kind of asset as the proceeds that, befue the proceeds arose, the acquisition secured creditor registered a notice in ttre Collateral Registry. 168

Select target paragraph3

Add to table of contents