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s 16

References to charges and fixed and floating charges

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Part 3Consequential provisions

16 References to charges and fixed and floating charges

(1)

This section applies in relation to a reference to a charge, a fixed charge, or a floating charge, over property in a law of this State, or in a security agreement, but only to the extent that —

(a)

the charge referred to has attached to personal property; and

(b)

the title to the personal property to which the charge has attached is in the grantor.

(2)

This section does not apply in relation to —

(a)

the Personal Property Securities Act 2009 (Commonwealth) section 12(2)(a) and (b) or 19(4); or

(b)

a reference to a charge, a fixed charge or a floating charge, if the charge referred to is a perfected security interest that is provided for by a transfer of an account or chattel paper.

(3)

A reference to a charge over property is taken to be a reference to a security interest that has attached to —

(a)

a circulating asset; or

(b)

personal property that is not a circulating asset.

(4)

A reference to a fixed charge over property is taken to be a reference to a security interest that has attached to personal property that is not a circulating asset.

(5)

A reference to a floating charge over property is taken to be a reference to a security interest that has attached to a circulating asset.

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