Chattel Securities Act 1987

A person who suffers loss or damage arising from, or in connection with, the purchase of registrable goods is entitled to make application to the Commissioner for an order for payment of compensation, including costs to the applicant, if —

before the purchase was made, an application was made —

under section 23(1)(a) for a certificate setting out details of particulars of entries in the register in respect of specified goods; or

under section 23(1)(b) for confirmation (by reference to an account) of particulars of details of entries relating to specified goods in the register;

the certificate or the account did not contain particulars of an entry in the register relating to those goods at the time the details were provided or obtained.

If an application is made under subsection (1), the Commissioner shall determine whether or not compensation should be paid to the applicant and, if the Commissioner determines that compensation should be paid, shall make an order for the payment to the applicant of such amount as the Commissioner determines.

The Commissioner shall not grant an application under subsection (1) if the person at the time of suffering the loss or damage —

had actual notice of the security interest entered in the register; or

had been put upon inquiry as to the existence of such a security interest and had deliberately abstained from inquiry or further inquiry when the person might reasonably have expected the inquiry or further inquiry to reveal the security interest.

Subsection (3) does not apply if the applicant under subsection (1) is the secured party in respect of the registrable goods.