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ARTICLE · 29 SEPTEMBER 2014

Liquidator's interest trumps that of an unperfected security interest

A failure to properly perfect a security interest can result in the personal property vesting in the insolvent estate.

AustraliaFinance and Banking
Focus: Pozzebon (Trustee) v Australian Gaming and Entertainment Ltd, in the matter of Australian Gaming and Entertainment Ltd (in liq) [2014] FCA 1034.
Services: Commercial, Dispute resolution & litigation, Financial services
Industry Focus: Financial services

Since the introduction of the Personal Property Securities Act 2009 (Cth) (PPSA), there has been very little case law concerning the interpretation of its provisions. Many of the reported decisions have involved creditors trying to frame their claims as falling outside the PPSA. This is probably because the priority rules which apply are quite simple – for example, a perfected interest trumps an unperfected interest. So, whenever a new case is decided, it is usually worthy of attention.

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