Chattel Securities (Amendment) Act 1998 (Vic)

Chattel Securities (Amendment) Act 1998

Act No. 88/1998

TABLE OF PROVISIONS

Section	Page
PART 1—PRELIMINARY	1

1.	Purpose	1
2.	Commencement	2
3.	Principal Act	2

PART 2—AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF VICTORIAN CIVIL AND

ADMINISTRATIVE TRIBUNAL 3

4. Applications to Tribunal 3

PART 3—AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF NATIONAL VEHICLE SECURITY

ENQUIRY REGISTER 4

5.	Definitions	4
6.	Choice of law	6
7.	Extinguishment of registered security interest	6
8.	Purchase for value in good faith	7
9.	Repairer's lien takes priority over registered security interest	8
10.	Registrable goods	8
11.	Compensation for extinguishment of registered security interest	9

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NOTES 10

i

Victoria

No. 88 of 1998

Chattel Securities (Amendment) Act

1998†

[Assented to 24 November 1998]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The main purpose of this Act is to amend the the establishment of the national vehicle security enquiry register and the Victorian Civil and Administrative Tribunal.

Chattel Securities (Amendment) Act 1998

Act No. 88/1998 s. 2

2. Commencement

(1) This Part and Part 2 come into operation on the

day on which this Act receives the Royal Assent.

(2) Subject to sub-section (3), the remaining

provisions of this Act come into operation on a

day or days to be proclaimed.

(3) If a provision referred to in sub-section (2) does

not come into operation before 1 July 1999, it

comes into operation on that day.

3. Principal Act No. 15/1987. Reprint No. 1

In this Act the Chattel Securities Act 1987 is	as at 19 September
called the Principal Act.	1996. Further amended by
No. 46/1998.

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Chattel Securities (Amendment) Act 1998

s. 4 Act No. 88/1998

PART 2—AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF VICTORIAN CIVIL AND

ADMINISTRATIVE TRIBUNAL

4. Applications to Tribunal

In the Principal Act—

(a)

in section 3(1), for the definition of ' "Tribunal" means Victorian Civil and

Administrative Tribunal established by
the Victorian Civil and

Administrative Tribunal Act 1998;';

(b) in section 25—

(i)  in sub-sections (1) and (1A) for "is entitled to make application to a Tribunal" substitute "may apply to the Tribunal";

(ii)  in sub-section (5) for "a Tribunal" substitute "the Tribunal";

(c) in section 26—

(i)  in sub-section (1) for "is entitled to make application to a Tribunal" substitute "may apply to the Tribunal";

(ii)  in sub-section (1A) for "is entitled to apply to a Tribunal" substitute "may apply to the Tribunal";

(iii)  in sub-section (5) for "a Tribunal" substitute "the Tribunal".

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Chattel Securities (Amendment) Act 1998

Act No. 88/1998 s. 5

PART 3—AMENDMENTS CONSEQUENT ON
ESTABLISHMENT OF NATIONAL VEHICLE SECURITY

ENQUIRY REGISTER

5. Definitions

In section 3(1) of the Principal Act—

(a) insert the following definitions—
' "agricultural implement" means a vehicle

without its own motive power, built to
perform agricultural tasks;

"agricultural machine" means a machine

with its own motive power, built to
perform agricultural tasks;

"agricultural tasks" includes the

cultivation of land, the growing and
harvesting of crops and the rearing of
livestock;

"repairer's lien" means a lien on goods in the possession of a person as security for payment for services or materials furnished in respect of those goods by

that person in the ordinary course of

business;';

(b) for the definition of "lease" substitute— ' "lease" means a contract for the hiring of

goods or for the grant of a licence to
use goods and a contract for the hiring
or bailment of goods for display

purposes but does not include—

(a) a hire-purchase agreement; or

Chattel Securities (Amendment) Act 1998

s. 5 Act No. 88/1998

(b) the grant of a licence to use a
vehicle within the meaning of the
Road Safety Act 1986 of which
the lessor is the registered
operator or an applicant for
registration as the registered
operator under that Act or a
corresponding Act of the

a contract for the hiring of or for State or of a Territory; or

(c) a contract for the hiring of or for the grant of a licence to use goods under which the lessor does not effectively transfer from the lessor to the lessee substantially all the risks and benefits incident to ownership of the goods;';

(c)

for the definition of "purchaser" ' "purchaser" means a person who

purchases goods but excludes—

(a)	a secured party not being a lessor, owner or other supplier of the goods under a lease, hire-purchase agreement or other contract for the supply of goods; and
(b)	in relation to unregistrable goods, a dealer;';

(d) in the definition of "security interest" omit ", but does not include a possessory lien or pledge".

Chattel Securities (Amendment) Act 1998

Act No. 88/1998 s. 6

6. Choice of law

In section 4(1) of the Principal Act paragraph (a) is repealed.

7. Extinguishment of registered security interest

(1) After section 7(1) of the Principal Act insert—

"(1A) Subject to section 8, if—

(a)

a secured party has a registered security possession of the goods; and

(b) purchase an interest in the goods
(otherwise than at a sale in pursuance

a purchaser purchases or purports to on behalf of a judgment creditor) for value in good faith and without notice when the purchase price is paid (or, if the purchase price is not paid at one time, when the first part of the purchase price is paid) of the security interest from a supplier being—

(i) the debtor; or

(ii) possession of the goods in
circumstances where the debtor

another person who is in the goods or is estopped from asserting an interest in the goods against the purchaser; and

(c) on the day of the purchase or purported purchase or on the preceding day a certificate was issued under section 24 in respect of the goods; and

Chattel Securities (Amendment) Act 1998

s. 8 Act No. 88/1998

(d) the certificate did not contain the particulars of an entry in the register relating to the goods at the time of the issue of the certificate—

the security interest of the secured party is

extinguished1.

(1B) A reference in sub-section (1A)(c) to the day

of the purchase or purported purchase is a reference to the day on which the purchase price is paid or, if the purchase price is not paid on one day, the day on which the first part of the purchase price is paid.".

(2) In section 7 of the Principal Act—

(a)	in sub-section (4) after "sub-section (1)" insert ", (1A), (1B)";
(b)	in sub-sections (7) and (9) after "sub-section (1)" insert ", (1A)".

8. Purchase for value in good faith

(1) In section 8(1) of the Principal Act—

(a)	in paragraph (b) after "other" insert "within the meaning of section 50 of the Corporations Law";
(b)	in paragraph (c) for "Companies (Victoria) Code" substitute "Corporations Law".

(2) In section 8 of the Principal Act for sub-section

(2) substitute—

"(2) For the purposes of section 7, if—

(a) a purchaser of goods is a lessor, owner or the supplier of the goods under a lease, hire-purchase agreement or other contract for the supply of the goods or is a person who purchases goods with the intention of entering into such a

Chattel Securities (Amendment) Act 1998

Act No. 88/1998	s. 9
lease, hire-purchase agreement or other contract; and

(b) the lessee, hirer or buyer under such a lease, hire-purchase agreement or other contract has participated in negotiations with the supplier of the goods—

the purchase or purported purchase of the
goods by the purchaser is not a purchase or
purported purchase in good faith and without
notice of a security interest if the lessee,
hirer or buyer has not acted in good faith and
without notice of the security interest.".

9.  Repairer's lien takes priority over registered security interest

(1) In section 10(2) of the Principal Act for

"Companies (Victoria) Code" substitute

"Corporations Law".

(2) After section 10(3) of the Principal Act insert—

"(4) A repairer's lien on goods, whether or not

registered under Part 3, ranks in priority to any registered security interest in respect of those goods irrespective of the date and time of the registration of that registered security interest.".

10. Registrable goods

In section 13(1) of the Principal Act for
paragraphs (a) and (b) substitute—
"(a) motor vehicles within the meaning of the

Road Safety Act 1986 that are or have been registered or eligible for registration under that Act; and

(b) trailers within the meaning of the Road Safety Act 1986 that are or have been

Chattel Securities (Amendment) Act 1998

s. 11 Act No. 88/1998

registered or eligible for registration under

that Act; and

(ba) agricultural machines and agricultural

implements; and".

11.  Compensation for extinguishment of registered security interest

(1) After section 25(1A) of the Principal Act insert—

"(1B) If—

(a)	a person suffers loss or damage because a registered security interest of which the person is the holder is extinguished by the operation of section 7(1A); and
(b)	the security interest was registered before the certificate referred to in section 7(1A)(c) was issued in respect
of the goods the subject of the security interest—

the person may apply to the Tribunal for an
order for the payment of compensation to the

person.".

(2) In the Principal Act—

(a) in section 25(2) for "or (1A)" substitute ", (1A) or (1B)";

(b) section 26 is repealed.

(3) After section 30(2) of the Principal Act insert—

"(3) Despite its repeal, section 26 as in force

immediately before the commencement of section 11(2)(b) of the Chattel Securities (Amendment) Act 1998 continues to apply
with respect to any loss or damage arising from or in connection with a purchase that took place before that commencement.".

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Chattel Securities (Amendment) Act 1998

Act No. 88/1998 Notes

NOTES

†

Minister's second reading speech—

Legislative Assembly: 22 October 1998

Legislative Council: 17 November 1998

The long title for the Bill for this Act was "to amend the Chattel
Securities Act 1987 as a consequence of the establishment of the national
vehicle security enquiry register and the Victorian Civil and

Administrative Tribunal and for other purposes."

1 S. 7(1A): The secured party may apply for compensation under section

25(1B) if the security interest was registered before the certificate was
issued under section 24.