{"id":"chattel-securities-act-1987","name":"Chattel Securities Act 1987","slug":"chattel-securities-act-1987","collection":"act","jurisdiction":"wa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":30143,"registerId":"wa-chattel-securities-act-1987-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Chattel Securities Act 1987","content":"![Crest]()Western Australia\n\nChattel Securities Act 1987\n\nWestern Australia\n\nChattel Securities Act 1987\n\nContents\n\nPart I — Preliminary\n\n1. Short title 2\n\n2. Commencement 2\n\n3. Terms used 2\n\n3A. Commissioner 6\n\nPart IIA — Act ceases to have effect except as otherwise provided\n\n3B. Terms used 7\n\n3C. Effect of Act at and after registration commencement time 7\n\n3D. Refusal to exercise registration functions 8\n\n3E. Show cause proceedings under s. 22 8\n\n3F. Details of entry 9\n\n3G. Act to expire 9\n\nPart II — Security interests\n\n4. Application of Part 10\n\n5. Agreement that security interest is legal interest 10\n\n6. Fixtures 10\n\n7. Extinguishing of security interest 12\n\n8. Purchase for value in good faith 14\n\n9. Extinguishing of subsequent security interests 15\n\n10. Priority of security interests 16\n\n11. Extinguishing etc. of security interest under corresponding law 16\n\n12. Regulations 17\n\nPart III — Registrable goods\n\n13. Application of Part 18\n\n14. Register 18\n\n15. Registration of security interest 18\n\n16. Offence 19\n\n17. Cancellation of registration 19\n\n18. Discharge of registered security interest 19\n\n19. Commissioner to cancel registration 19\n\n20. Change in particulars 20\n\n21. Variation of particulars 20\n\n22. Commissioner may cancel registration 20\n\n23. Details of entries 21\n\n24. Compensation for extinguishment of security interest 22\n\n25. Compensation where entry not shown on certificate 23\n\n26. Review by State Administrative Tribunal 24\n\nPart IV — Miscellaneous\n\n29. Appropriation 26\n\n30. Offence 26\n\n30A. Delegation by Commissioner 27\n\n30B. Information officially obtained to be confidential 27\n\n30C. Protection from liability for wrongdoing 28\n\n30D. Powers of investigation 28\n\n31. Regulations 29\n\nNotes\n\nCompilation table 30\n\nDefined terms\n\n  \n\nWestern Australia\n\nChattel Securities Act 1987\n\nAn Act relating to chattel securities and to amend the *Consumer Affairs Act 1971* 2.\n\n## Part I — Preliminary\n\n##### 1. Short title\n\nThis Act may be cited as the *Chattel Securities Act 1987* 1.\n\n##### 2. Commencement\n\nThe provisions of this Act shall come into operation on such day or days as is or are respectively fixed by proclamation 1.\n\n##### 3. Terms used\n\n(1) In this Act —\n\n  approved form means a form approved for that purpose by the Commissioner;\n\n  commercial vehicle has the same meaning as in the *Credit Act 1984*;\n\nCommissioner means the person for the time being designated as the Commissioner under section 3A;\n\n  dealer with respect to any goods means a person who carries on a business in which the person deals in goods of that kind;\n\n  debtor in relation to a security interest means the person who created the security interest and includes the lessee in relation to a lease of goods and the hirer in relation to a hire‑purchase agreement;\n\nDepartment means the department of the Public Service principally assisting in the administration of this Act;\n\n  farm machinery has the same meaning as in the *Credit Act 1984*;\n\n  goods includes all chattels personal and fixtures other than —\n\n(a) things in action and money; and\n\n(b) ships registered in an official register kept under a law in force in Western Australia relating to title to ships; and\n\n(c) aircraft; and\n\n(d) livestock, unshorn wool and growing crops; and\n\n(e) to the extent of rights expressly conferred on a registered security under the *Bills of Sale Act 1899* shorn wool and harvested crops; and\n\n(f) documents of title;\n\n  hire‑purchase agreement has the same meaning as in the *Hire‑Purchase Act 1959*;\n\n  hirer has the same meaning as in the *Hire‑Purchase Act 1959*;\n\n  inventory security interest means a security interest —\n\n(a) given by a dealer in or over goods of a kind in which the dealer deals in the course of the dealer’s business; or\n\n(b) reserved in or over goods in the possession or control of a dealer, being goods of a kind in which the dealer deals in the course of the dealer’s business;\n\n  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 —\n\n(a) a hire‑purchase agreement; or\n\n(b) a contract for the hiring of or for the grant of a licence to use a vehicle as defined in the *Road Traffic (Administration) Act 2008* section 4 of which the lessor is, or is applying to be, a licence holder as defined in section 6(1) of that Act; or\n\n(c) a contract for the hiring of or for the grant of a licence to use goods, not being a vehicle as defined in the *Road Traffic (Administration) Act 2008* section 4, 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;\n\n  lessee in relation to a lease of goods, means the person to whom the goods are hired under the lease or to whom a licence to use the goods is granted under the lease;\n\n  lessor in relation to a lease of goods, means the person who hires the goods to another person under the lease or grants to another person under the lease a licence to use the goods;\n\n  owner has the same meaning as in the *Hire‑Purchase Act 1959*;\n\n  purchase with respect to goods, means acquire an interest in the goods by way of purchase, exchange, lease or hire‑purchase;\n\n  purchase price with respect to goods purchased by a purchaser, means the consideration paid or payable by the purchaser or, if the purchaser is a lessee under a lease or a hirer under a hire‑purchase agreement, the consideration paid or payable by the lessor or owner;\n\n  purchaser means a person who purchases goods but excludes —\n\n(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; or\n\n(b) in relation to unregistrable goods, a dealer;\n\n  register means of register kept under Part III;\n\n  registered means registered under Part III;\n\nregistrable goods means goods to which Part III applies;\n\n  secured party means the holder of a security interest and includes the lessor in relation to a lease of goods and the owner in relation to a hire‑purchase agreement;\n\n  security interest means an interest in or a power over goods (whether arising by or pursuant to an instrument or transaction) which secures payment of a debt or other pecuniary obligation or the performance of any other obligation and includes any interest in or power over goods of a lessor, owner or other supplier of goods, but does not include a possessory lien or pledge;\n\n  supply in relation to goods, means dispose of an interest in the goods by way of sale, exchange, lease or hire‑purchase;\n\ntrailer means a vehicle that is built to be towed, or is towed, by a motor vehicle, whether by attachment to the motor vehicle directly or to another trailer towed by the motor vehicle, but does not include a motor vehicle that is being towed;\n\n  unregistered security interest means a security interest which is not registered under Part III;\n\nunregistrable goods means goods to which Part III does not apply.\n\n(2) This Act applies to a person to whom the rights and obligations of —\n\n(a) a secured party; or\n\n(b) a debtor,\n\nhave passed by operation of law in the same manner as this Act applies to the person from whom the rights and obligations have passed by operation of law.\n\n(3) For the purposes of this Act, a hirer or lessee of goods or a buyer of goods under a conditional sale is deemed to have an interest in the goods notwithstanding that title or general property in the goods has not passed to the hirer, lessee or buyer.\n\n(4) For the purposes of this Act —\n\n(a) a security interest attaches at the time at which value is given by the secured party and the debtor has rights in the goods or at such later time as the secured party and the debtor intend; and\n\n(b) an agreement to which a debtor is party which contains a provision to the effect that the debtor takes the goods on lease or hire‑purchase or creates a security interest over the goods shall be deemed to give value to the debtor.\n\n(5) For the purposes of this Act, a person has notice of a security interest in goods —\n\n(a) if the person has actual notice of the security interest; or\n\n(b) if the person has been put upon inquiry as to the existence of the security interest and has deliberately abstained from inquiry or further inquiry when the person might reasonably have expected the inquiry or further inquiry to reveal the security interest.\n\n(6) For the purposes of this Act, a person has notice of a security interest in goods affixed to land if the person would have had, or would have been deemed to have had, notice of that interest if subsection (5) had not been enacted.\n\n(7) If an amount, other than the sum of $20 000 but not exceeding the sum of $50 000, is prescribed by the regulations as the purchase price for the purposes of section 7, a reference in this Act to $20 000 is a reference to the prescribed amount.\n\n(8) If the Governor is satisfied that provisions of a law of another State or of a Territory correspond to provisions of this Act, the Governor may, by Order published in the *Government Gazette*, declare those provisions to be a corresponding law for the purposes of this Act.\n\n[Section 3 amended: No. 28 of 2001 s. 26; No. 74 of 2003 s. 34; No. 55 of 2004 s. 104; No. 28 of 2006 s. 59; No. 8 of 2012 s. 49.]\n\n##### 3A. Commissioner\n\n(1) The Minister is required, by notice published in the *Gazette*, to designate a person who is an executive officer of the Department as the Commissioner for the purposes of this Act.\n\n(2) The Commissioner may be referred to by a title specified by the Minister by notice published in the *Gazette*.\n\n(3) In this section —\n\n  executive officer has the meaning given by section 3(1) of the *Public Sector Management Act 1994*.\n\n[Section 3A inserted: No. 28 of 2006 s. 60.]\n\n## Part IIA — Act ceases to have effect except as otherwise provided\n\n[Heading inserted: No. 42 of 2011 s. 34.]\n\n##### 3B. Terms used\n\nIn this Part —\n\nmigration time has the meaning given in the *Personal Property Securities Act 2009* (Commonwealth) section 306(1);\n\npre‑PPS transition period means the period —\n\n(a) commencing at the migration time or such earlier time as may be prescribed by the regulations; and\n\n(b) ending at the registration commencement time;\n\nRegistrar has the meaning given in the *Personal Property Securities Act 2009* (Commonwealth) section 10;\n\nregistration commencement time has the meaning given in the *Personal Property Securities Act 2009* (Commonwealth) section 306(2);\n\nregistration function means any function conferred or imposed on the Commissioner under Part III.\n\n[Section 3B inserted: No. 42 of 2011 s. 34.]\n\n##### 3C. Effect of Act at and after registration commencement time\n\n(1) Subject to section 3D, this Act, other than the following provisions, has no effect at and after the registration commencement time —\n\n(a) sections 3A, 22, 23, 24, 25, 26, 29, 30A, 30B, 30C, 30D and 31;\n\n(b) any other provision of this Act (a related provision) that is referred to in provision listed in paragraph (a) (a primary provision) to the extent necessary for the purposes of the continued operation of the primary provision;\n\n(c) any power to make regulations in respect of a matter that is conferred by the primary provision or a related provision.\n\n(2) Section 23 has no effect on and after the day after the end of the period of 7 years beginning at the registration commencement time.\n\n[Section 3C inserted: No. 42 of 2011 s. 34.]\n\n##### 3D. Refusal to exercise registration functions\n\n(1) Subject to section 3E, the Commissioner may refuse to exercise a registration function during the pre‑PPS transitional period.\n\n(2) Without limiting subsection (1), the Commissioner may refuse to exercise a registration function during the pre‑PPS transitional period in relation to a matter that was not finally determined or concluded immediately before the commencement of that period.\n\n(3) After the end of the pre‑PPS transitional period the Commissioner is not to exercise a registration function under section 15, 19, 20, 21 or 22.\n\n[Section 3D inserted: No. 42 of 2011 s. 34.]\n\n##### 3E. Show cause proceedings under s. 22\n\nIf the Commissioner —\n\n(a) has given a person a notice under section 22(1) and that notice is in force immediately before the registration commencement time; and\n\n(b) would have cancelled the registration of the person under section 22(2) had he or she been able to exercise that registration function after the end of the pre‑PPS transition period,\n\nthe Commissioner may provide the Registrar with a written notice stating the registration of the person would have been so cancelled.\n\n[Section 3E inserted: No. 42 of 2011 s. 34.]\n\n##### 3F. Details of entry\n\nAt and after the registration commencement time, the Commissioner may, instead of providing a certificate under section 23(3), respond to an application made in accordance with section 23 by providing the applicant with an extract from the register.\n\n[Section 3F inserted: No. 42 of 2011 s. 34.]\n\n##### 3G. Act to expire\n\n(1) When the Minister is satisfied that there is no reason for this Act to continue, the Minister is to publish a notice in the *Gazette* stating that the Minister is satisfied as to that matter, and that the Act expires at the end of the day on which the notice is published.\n\n(2) This Act expires as stated in a notice published under subsection (1).\n\n[Section 3G inserted: No. 42 of 2011 s. 34.]\n\n## Part II — Security interests\n\n##### 4. Application of Part\n\n(1) The provisions of this Part (other than section 5) apply (notwithstanding anything to the contrary in any other Act or law) to and in respect of a security interest (whether created within or outside Western Australia) if the goods the subject of the security interest —\n\n(a) are at the date of attachment of the security interest situated in Western Australia; or\n\n(b) are for the time being situated in Western Australia.\n\n(2) Section 5 applies (notwithstanding anything to the contrary in any other Act or law) to and in respect of a security interest (whether created within or outside Western Australia) if the goods the subject of the security interest are at the date of attachment of the security interest situated in Western Australia.\n\n(3) Subject to subsection (4), a reference in this Part to a security interest does not include a reference to a security interest which attaches before the date of commencement of this section.\n\n(4) Sections 7 and 10 have effect in relation to a security interest relating to registrable goods as if in those sections a reference to a security interest were a reference to a security interest which attaches before, upon or after the commencement of this section.\n\n##### 5. Agreement that security interest is legal interest\n\nThe parties to a security interest may agree that the security interest shall be a legal interest in the goods subject to the security interest and, if the parties so agree, the security interest is a legal interest in the goods.\n\n##### 6. Fixtures\n\n(1) If, after a security interest attaches, goods subject to the security interest are affixed to land and become fixtures, the fixtures, for the purposes of the exercise of the secured party’s right to take possession of, remove or sell the goods, shall be deemed not to have become fixtures.\n\n(2) A secured party who removes fixtures to which subsection (1) applies is liable to make good damage done to the land in removing the fixtures.\n\n(3) If, after a lease of goods is made, goods subject to the lease are affixed to land and become fixtures, the fixtures, for the purposes of the exercise of the lessor’s right to take possession of the goods, shall be deemed not to have become fixtures.\n\n(4) A lessor who removes fixtures to which subsection (3) applies is liable to make good damage done to the land in removing fixtures.\n\n(5) If, after a hire‑purchase agreement is made, goods subject to the agreement are affixed to land and become fixtures, the fixtures, for the purposes of the exercise of the owner’s right to take possession of the goods, shall be deemed not to have become fixtures.\n\n(6) An owner who removes fixtures to which subsection (5) applies is liable to make good damage done to the land in removing the fixtures.\n\n(7) Despite this section, a secured party is not entitled to take possession of goods that have become affixed to land and become fixtures if, after the goods have become so affixed, a person other than the secured party has acquired an interest in the land for value in good faith and without notice of the security interest of the secured party.\n\n(8) If goods subject to a security interest were affixed to land after an offer to enter into the agreement giving rise to the interest was made, but before the offer was accepted, the goods, for the purposes of this section, shall be deemed to have been affixed to the land after the agreement was made.\n\n##### 7. Extinguishing of security interest\n\n(1) Subject to section 8, if a secured party has —\n\n(a) an unregistered security interest (whether or not over registrable goods); or\n\n(b) a registered inventory security interest,\n\nin goods but is not in possession of the goods and a purchaser purchases or purports to purchase an interest in the goods (otherwise than at a sale in pursuance of a process of execution issued by or on behalf of a judgment creditor) for value in good faith and without notice, when the purchase price is paid, (or, if the 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 —\n\n(c) the debtor; or\n\n(d) another person who is in possession of the goods in circumstances where the debtor has lost the right to possession of the goods or is estopped from asserting an interest in the goods against the purchaser,\n\nthe security interest of the secured party is extinguished.\n\n(2) Subject to section 8, if a secured party has a security interest in a vehicle as defined in section 5(2) of the *Motor Vehicle Dealers Act 1973* but is not in possession of the vehicle and a purchaser purchases or purports to purchase an interest in the vehicle (otherwise than at a sale in pursuance of a process of execution issued by or on behalf of a judgment creditor) for value in good faith and without notice when the purchase price is paid (or, if the price is not paid at one time, when the first part of the purchase price is paid) of the security interest from —\n\n(a) a motor vehicle dealer licensed; or\n\n(b) a car market operator registered,\n\nunder the *Motor Vehicle Dealers Act 1973*,  the security interest of the secured party is extinguished.\n\n(3) The onus of proving that a person has purchased an interest in goods free from a security interest is on the person asserting that the interest was so purchased.\n\n(4) A reference in subsection (1) or (2) to payment of the purchase price or to payment of part of the purchase price includes a reference to the giving of any valuable consideration in satisfaction of the purchase price or of part of the purchase price.\n\n(5) The provisions of subsection (1) do not apply to or in respect of —\n\n(a) a purchase or purported purchase of an interest in unregistrable goods, other than a commercial vehicle or farm machinery, if the purchase price exceeds $20 000; or\n\n(b) a purchase or purported purchase of a motor vehicle as defined in the *Road Traffic (Administration) Act 2008* section 4 or a trailer which is not licensed under the *Road Traffic (Vehicles) Act* *2012* but  is registered or licensed under the law of another State or of a Territory, if a security interest, not being an inventory security interest, in the motor vehicle or trailer is registered under the provisions of a law declared under section 3(8) to be a corresponding law of that State or Territory for the purposes of this Act.\n\n(6) Section 25(2) of the *Sale of Goods Act 1895* has no effect in relation to the delivery or transfer of goods or documents of title to goods if —\n\n(a) the goods are registrable goods; or\n\n(b) the purchase price of the goods does not exceed $20 000; or\n\n(c) the goods are a commercial vehicle or farm machinery; or\n\n(d) the goods are a motor vehicle as defined in the *Road Traffic (Administration) Act 2008* section 4 or a trailer which is not licensed under the *Road Traffic (Vehicles) Act 2012* but  is registered or licensed under the law of another State or of a Territory and there is in force in that State or Territory a law declared under section 3(8) to be a corresponding law for the purposes of this Act.\n\n(7) If security interest is extinguished under subsection (1) or (2), the secured party shall be subrogated to the rights (if any) of the supplier and any predecessor in title of the supplier in and in respect of the goods, including the right to receive any part of the purchase price for the goods which has not been paid.\n\n(8) A person liable to pay the purchase price of any goods obtains a good discharge for any payment made by the person before the person receives notice of the rights of any secured party under subsection (7).\n\n(9) If, by reason of any purchase of goods, a security interest is extinguished under subsection (1) or (2) or under section 9 and a contract which is or includes the purchase is rescinded, the security interest shall revive and have effect as if the purchase had not occurred.\n\n[Section 7 amended: No. 28 of 2001 s. 27; No. 4 of 2002 s. 70; correction to reprint 24 Mar 2006 p. 1102; No. 8 of 2012 s. 50.]\n\n##### 8. Purchase for value in good faith\n\n(1) For the purposes of section 7, a purchase or purported purchase of goods by a purchaser is not a purchase or purported purchase for value in good faith and without notice of a security interest if —\n\n(a) the purchaser is a member of the same household as is the supplier or purported supplier of the goods; or\n\n(b) the purchaser and the supplier or purported supplier of the goods are bodies corporate that are related to each other; or\n\n(c) one of the purchaser and the supplier or purported supplier of the goods is a body corporate and the other a natural person who, within the meaning of the *Corporations Act 2001* of the Commonwealth, is a director or officer of the body corporate,\n\nunless the person asserting that it is such a purchase or purported purchase proves beyond reasonable doubt that it is such a purchase or purported purchase.\n\n(2) For the purposes of subsection (1), the question whether bodies corporate are related to each other shall be determined in the same manner as the question whether corporations within the meaning of the *Corporations Act 2001* of the Commonwealth are related bodies corporate would be determined under that Act.\n\n(3) For the purposes of section 7 where 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 lease, hire‑purchase agreement or other contract and 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 such lessee, hirer or buyer has not acted in good faith and without notice of the security interest.\n\n[Section 8 amended: No. 20 of 2003 s. 12.]\n\n##### 9. Extinguishing of subsequent security interests\n\n(1) If a purchaser purchases goods from a secured party, all security interests which rank subsequently to the security interest of the secured party are extinguished without prejudice to the rights of the secured parties in respect of the interests to, or to call for, an accounting of such part of the consideration for the purchase as exceeds the entitlement of the first‑mentioned secured party.\n\n(2) Nothing in subsection (1) prejudices the right of a debtor or other secured party to damages if a secured party wrongly exercises a power to sell goods subject to a security interest held by the person.\n\n##### 10. Priority of security interests\n\n(1) If there are 2 or more security interests in respect of the same goods and one or more of those security interests is registered under Part III, those interests, subject to this section, rank in priority with respect to all debts or other pecuniary obligations (including contingent obligations) and all other obligations respectively secured under them whenever arising in the order in which they are so registered.\n\n(2) The order of priority of security interests in subsection (1) is subject to any express contrary provision in the *Corporations Act 2001* of the Commonwealth and to any agreement between the holders of the security interests.\n\n(3) If, before the registration of a security interest, the secured party in respect of any other security interest in the same goods takes possession of the goods, the second‑mentioned security interest, subject to subsection (2), ranks in priority to the registered security interest with respect to those goods.\n\n[Section 10 amended: No. 20 of 2003 s. 13.]\n\n##### 11. Extinguishing etc. of security interest under corresponding law\n\n(1) If a security interest over goods situated in another State or in a Territory is extinguished or loses priority under the provisions of a law of that State or Territory declared under section 3(8) to be a corresponding law of that State or Territory for the purposes of this Act, that interest is also extinguished or loses priority for the purposes of the law of Western Australia.\n\n(2) The provisions of subsection (1) are in addition to the provisions of any other law or rule of law relating to the extinguishing or loss of priority of security interests.\n\n##### 12. Regulations\n\nThe Governor may make regulations for or with respect to prescribing any matter or thing which is authorised or required to be prescribed for carrying out or giving effect to this Part.\n\n## Part III — Registrable goods\n\n##### 13. Application of Part\n\nThe goods to which this Part applies are —\n\n(a) motor vehicles as defined in the *Road Traffic (Administration) Act 2008* section 4, being motor vehicles that, unless the regulations otherwise provide, are, or have been, licensed under the *Road Traffic (Vehicles) Act 2012*; and\n\n(b) trailers that, unless the regulations otherwise provide, are, or have been, licensed under the *Road Traffic (Vehicles) Act 2012*;and\n\n(c) motor vehicles and trailers within the meaning of the *Interstate Road Transport Act 1985* of the Commonwealth as amended and in force for the time being, being vehicles and trailers that are registered in Western Australia under that Act; and\n\n(d) prescribed goods.\n\n[Section 13 amended: No. 28 of 2001 s. 28; No. 8 of 2012 s. 51.]\n\n##### 14. Register\n\nThe Commissioner shall keep a register in the prescribed form or in the prescribed manner in which shall be entered security interests in relation to registrable goods.\n\n##### 15. Registration of security interest\n\n(1) A person may make application to the Commissioner for registration of a security interest in registrable goods.\n\n(2) An application under subsection (1) shall be in or to the effect of the approved form.\n\n(3) The Commissioner in relation to each application under this section, shall enter in the register the security interest and other particulars of the application and the date on which, and time at which, the entry is made.\n\n(4) The applicant, at the prescribed time or within the prescribed period, shall pay the prescribed fee (if any) payable in respect of an application made by the applicant under subsection (1).\n\n##### 16. Offence\n\n(1) A person shall not make an application under section 15 for the registration of a security interest if that person is not the holder of the interest.\n\nPenalty: $500.\n\n(2) It is a defence to a prosecution of a person for an offence under subsection (1) if the person proves that when the application was made the person believed on reasonable grounds that the person was the holder of the security interest.\n\n##### 17. Cancellation of registration\n\nIf a person is the holder of a registered security interest, that person may make application to the Commissioner in or to the effect of the approved form for the cancellation of that registration.\n\n##### 18. Discharge of registered security interest\n\nIf a registered security interest is discharged or extinguished, the person who was the holder immediately before the discharge or extinguishment, not later than 14 days after the person knows or ought to reasonably know that he or she has ceased to be the holder of that security interest, shall make application to the Commissioner in or to the effect of the approved form for the cancellation of the registration.\n\nPenalty: $500.\n\n##### 19. Commissioner to cancel registration\n\nIf an application is made under section 17 or 18, the Commissioner shall cancel the particulars in the register to which the application relates and shall note in the register the date on which, and the time at which, the particulars were cancelled.\n\n##### 20. Change in particulars\n\n(1) If there is a change in the particulars of a registered security interest (other than by reason that the security interest is discharged or extinguished), the secured party may make application in or to the effect of the approved form for the variation of those particulars.\n\n(2) If an application is made under subsection (1), the Commissioner shall vary the particulars in the register and note in the register the date on which, and time at which, the particulars are varied.\n\n(3) The applicant, at the prescribed time or within the prescribed period, shall pay the prescribed fee (if any) payable in respect of an application made by the applicant under subsection (1).\n\n[Section 20 amended: No. 39 of 1996 s. 4.]\n\n##### 21. Variation of particulars\n\nIf a prescribed change occurs in the particulars entered in the register, the Commissioner may vary the particulars in the entry in the register and note in the register the date on which, and the time at which, the particulars are varied.\n\n##### 22. Commissioner may cancel registration\n\n(1) If a person is registered under section 15 as the holder of a security interest in respect of registrable goods and it appears to the Commissioner that —\n\n(a) the person was not, when the application for registration was made, the holder of such a security interest; or\n\n(b) the security interest has been discharged or extinguished and the person has failed to comply with section 18,\n\nthe Commissioner, by notice in writing in the approved form given to the person, may require the person to show cause within 14 days after the giving of the notice why the registration should not be cancelled.\n\n(2) If a person fails to show cause as required by a notice under subsection (1), the Commissioner, in his discretion, may cancel the registration of the person and must note in the register the date on which, and time at which, the registration was cancelled.\n\n(3) For the purposes of subsection (1), a notice shall be deemed to have been given to a person when it is posted by prepaid post to the person at the person’s address shown in the register.\n\n##### 23. Details of entries\n\n(1) A person (the applicant) may apply to the Commissioner, in or to the effect of the approved form or in the prescribed manner —\n\n(a) for a certificate containing —\n\n(i) details of particulars of entries in the register in respect of specified goods to which this Part applies; or\n\n(ii) a statement that there are no entries in the register in respect of those goods;\n\nor\n\n(b) subject to the approval of the Commissioner, for confirmation of —\n\n(i) details of particulars of entries in the register in respect of specified goods to which this Part applies; or\n\n(ii) a statement that there are no entries in the register in respect of those goods,\n\nby reference to an account sent to the applicant.\n\n(2) The applicant, at the prescribed time or within the prescribed period, shall pay the prescribed fee (if any) payable in respect of an application under subsection (1).\n\n(3) The Commissioner shall respond to an application made in accordance with this section by providing a certificate containing, or an account confirming, the details or statement applied for, and bearing the time and date that the response to the application was made, together with such other information as the Commissioner approves.\n\n(4) In this section —\n\n  entries does not include particulars in the register that have been cancelled under section 19.\n\n[Section 23 inserted: No. 39 of 1996 s. 5.]\n\n##### 24. Compensation for extinguishment of security interest\n\n(1) A person who suffers loss or damage by reason that a security interest in registrable goods of which the person is the holder is extinguished by the operation of section 7(1), being a security interest —\n\n(a) for the registration of which application had been made under section 15; and\n\n(b) which at the time the loss or damage was suffered —\n\n(i) had not been entered in the register; or\n\n(ii) was entered in the register but not correctly entered; or\n\n(iii) having been entered in the register after the application was made, was no longer entered by reason of the cancellation of the entry under section 22,\n\nis entitled to make application to the Commissioner for an order for the payment of compensation to the applicant.\n\n(2) 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 including costs as the Commissioner determines.\n\n(3) The Commissioner shall not make an order under this section in relation to an application arising by reason of loss or damage suffered after the cancellation under section 22 of an entry in the register if the applicant did not show cause in accordance with that section unless the Commissioner is satisfied that the applicant did not show cause in accordance with that section why the registration should not be cancelled —\n\n(a) because of circumstances beyond the applicant’s control; or\n\n(b) for reasons that ought reasonably to be excused.\n\n(4) Compensation paid in respect of a claim under this section shall not exceed —\n\n(a) the amount of the debt or other pecuniary obligation or the value of any other obligation secured by the security interest; or\n\n(b) the value of the registrable goods in respect of which the application is made,\n\nat the time the loss or damage is suffered, whichever is the lesser.\n\n[Section 24 amended: No. 8 of 2009 s. 30.]\n\n##### 25. Compensation where entry not shown on certificate\n\n(1) 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 —\n\n(a) before the purchase was made, an application was made —\n\n(i) under section 23(1)(a) for a certificate setting out details of particulars of entries in the register in respect of specified goods; or\n\n(ii) 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;\n\nand\n\n(b) 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.\n\n(2) 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.\n\n(3) The Commissioner shall not grant an application under subsection (1) if the person at the time of suffering the loss or damage —\n\n(a) had actual notice of the security interest entered in the register; or\n\n(b) 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.\n\n(4) Subsection (3) does not apply if the applicant under subsection (1) is the secured party in respect of the registrable goods.\n\n[Section 25 amended: No. 39 of 1996 s. 6.]\n\n##### 26. Review by State Administrative Tribunal\n\n(1) A person who is aggrieved by a decision of the Commissioner under section 24 or 25 may apply to the State Administrative Tribunal for a review of the decision.\n\n[(2) deleted]\n\n[Section 26 amended: No. 55 of 2004 s. 105.]\n\n[**27, 28.** Deleted: No. 55 of 2004 s. 106.]\n\n## Part IV — Miscellaneous\n\n[Heading inserted: No. 28 of 2006 s. 61.]\n\n##### 29. Appropriation\n\nAny moneys payable under an order of the Commissioner under this Act or to give effect to a decision arising from an application made under this Act to the State Administrative Tribunal shall be charged to the Consolidated Account which is to the extent necessary appropriated accordingly.\n\n[Section 29 amended: No. 6 of 1993 s. 11; No. 49 of 1996 s. 64; No. 55 of 2004 s. 107; No. 77 of 2006 s. 4.]\n\n##### 30. Offence\n\n(1) A dealer shall not supply any goods in the course of a business without first procuring the discharge of any inventory security interest created by the dealer in the goods.\n\nPenalty: $2 500.\n\n(2) Subsection (1) does not apply in relation to the sale, exchange or disposition of a vehicle as defined in section 5(2) of the *Motor Vehicle Dealers Act 1973* that is subject to an inventory security interest by a licensed motor vehicle dealer as defined in that Act if the sale, exchange or disposition is authorised by and in accordance with the terms of the inventory security interest.\n\n(3) A dealer shall not supply any goods in the course of a business without first procuring the discharge of —\n\n(a) any security interest of which the dealer has notice; and\n\n(b) any registered security interest whether or not the dealer has notice of the interest; and\n\n(c) if the vehicle is not licensed under the *Road Traffic (Vehicles) Act 2012* but is registered or licensed under the law of another State or a Territory, any security interest in the vehicle registered under the provisions of a law of that State or Territory corresponding to the provisions of this Act (whether or not those provisions are declared under section 3(8) to be a corresponding law of that State or Territory for the purposes of this Act).\n\nPenalty: $2 500.\n\n(4) Without affecting the operation of subsection (2), subsections (1) and (3) do not apply to the extent or in the circumstances prescribed by the regulations.\n\n[Section 30 amended: No. 8 of 2012 s. 52.]\n\n##### 30A. Delegation by Commissioner\n\n(1) The Commissioner may delegate to any other person employed in the Department any power or duty of the Commissioner under another provision of this Act.\n\n(2) The delegation must be in writing signed by the Commissioner.\n\n(3) A person to whom a power or duty is delegated under this section cannot delegate that power or duty.\n\n(4) A person exercising or performing a power or duty that has been delegated to the person under this section is to be taken to do so in accordance with the terms of the delegation unless the contrary is shown.\n\n(5) Nothing in this section limits the ability of the Commissioner to perform a function through an officer or agent.\n\n[Section 30A inserted: No. 28 of 2006 s. 62.]\n\n##### 30B. Information officially obtained to be confidential\n\n(1) A person who misuses information obtained by reason of any function that person has, or at any time had, in the administration of this Act commits an offence.\n\nPenalty: $20 000.\n\n(2) A person misuses information if it is, directly or indirectly, recorded, used, or disclosed to another person, other than —\n\n(a) in the course of duty; or\n\n(b) under this Act; or\n\n(c) for the purposes of the investigation of any suspected offence or the conduct of proceedings against any person for an offence; or\n\n(d) in a manner that could not reasonably be expected to lead to the identification of any person to whom the information refers; or\n\n(e) with the consent of the person to whom the information relates, or each of them if there is more than one.\n\n(3) In this section —\n\n  information means information concerning the affairs of a person.\n\n[Section 30B inserted: No. 28 of 2006 s. 62.]\n\n##### 30C. Protection from liability for wrongdoing\n\n(1) Subject to sections 24 and 25, a person is not liable for anything that the person has, in good faith, done in the performance or purported performance of a function under this Act.\n\n(2) Subject to sections 24 and 25, the State is also relieved of any liability that it might otherwise have had for another person having done anything as described in subsection (1).\n\n(3) The protection given by this section applies even though the thing done as described in subsection (1) may have been capable of being done whether or not this Act had been enacted.\n\n(4) In this section, a reference to the doing of anything includes a reference to an omission to do anything.\n\n[Section 30C inserted: No. 28 of 2006 s. 62.]\n\n##### 30D. Powers of investigation\n\nThe *Fair Trading Act 2010* section 61 and Part 6 of that Act apply to this Act.\n\n[Section 30D inserted: No. 58 of 2010 s. 186.]\n\n##### 31. Regulations\n\n(1) The Governor may make regulations for or with respect to prescribing any matter or thing which is authorised or required to be prescribed for carrying out or giving effect to this Part.\n\n(2) Except as otherwise expressly provided by this Part, regulations under this Part may be of general or of specially limited application and may differ according to differences in time, place or circumstances.\n\n[**32.** Omitted under the Reprints Act 1984 s. 7(4)(e).]\n\n![dline]()\n\nNotes\n\n1 This is a compilation of the *Chattel Securities Act 1987* and includes the amendments made by the other written laws referred to in the following table. The table also contains information about any reprint.\n\nCompilation table\n\n| **Short title** | | **Number and year** | | **Assent** | | **Commencement** | |\n| --- | --- | --- | --- | --- | --- | --- | --- |\n| *Chattel Securities Act 1987* | | 101 of 1987 | | 18 Dec 1987 | | s. 1 and 2: 18 Dec 1987;   s. 3, 12‑14, 15(1), (2) and (4), 16‑23, 31‑32: 29 Aug 1988 (see s. 2 and *Gazette* 5 Aug 1988 p. 2583);   s. 4‑11, 15(3) and 24‑30: 14 Nov 1988 (see s. 2 and *Gazette* 5 Aug 1988 p. 2583) | |\n| *Financial Administration Legislation Amendment Act 1993* s. 11 | | 6 of 1993 | | 27 Aug 1993 | | 1 Jul 1993 (see s. 2(1)) | |\n| *Chattel Securities Amendment Act 1996* | | 39 of 1996 | | 27 Sep 1996 | | s. 1 and 2: 27 Sep 1996;   Act other than s. 1 and 2: 4 Nov 1996 (see s. 2 and *Gazette* 29 Oct 1996 p. 5715) | |\n| *Financial Legislation Amendment Act 1996* s. 64 | | 49 of 1996 | | 25 Oct 1996 | | 25 Oct 1996 (see s. 2(1)) | |\n| *Road Traffic Amendment (Vehicle Licensing) Amendment Act 2001* Pt. 3 Div. 1 | | 28 of 2001 | | 21 Dec 2001 | | 4 Dec 2006 (see s. 2 and *Gazette* 28 Nov 2006 p. 4889) | |\n| *Motor Vehicle Dealers Amendment Act 2002* s. 70 | | 4 of 2002 | | 4 Jun 2002 | | 1 Sep 2002 (see s. 2 and *Gazette* 13 Aug 2002 p. 4151) | |\n| **Reprint of the *Chattel Securities Act 1987* as at 13 Dec 2002** (includes amendments listed above except those in the *Road Traffic Amendment (Vehicle Licensing) Act 2001*) (correction in *Gazette* 24 Mar 2006 p. 1102) | | | | | | | |\n| *Corporations (Consequential Amendments) Act (No. 2) 2003* Pt. 4 | | 20 of 2003 | | 23 Apr 2003 | | 15 Jul 2001 (see s. 2(1) and Cwlth *Gazette* 13 Jul 2001 No. S285) | |\n| *Statutes (Repeals and Minor Amendments) Act 2003* s. 34 | | 74 of 2003 | | 15 Dec 2003 | | 15 Dec 2003 (see s. 2) | |\n| *State Administrative Tribunal (Conferral of Jurisdiction) Amendment and Repeal Act 2004* Pt. 2 Div. 18 3 | | 55 of 2004 | | 24 Nov 2004 | | 1 Jan 2005 (see s. 2 and *Gazette* 31 Dec 2004 p. 7130) | |\n| **Reprint 2: The *Chattel Securities Act 1987* as at 21 Apr 2006** (includes amendments listed above except those in the *Road Traffic Amendment (Vehicle Licensing) Act 2001*) | | | | | | | |\n| *Machinery of Government (Miscellaneous Amendments) Act 2006* Pt. 4 Div. 4 4 | | 28 of 2006 | | 26 Jun 2006 | | 1 Jul 2006 (see s. 2 and *Gazette* 27 Jun 2006 p. 2347) | |\n| *Financial Legislation Amendment and Repeal Act 2006* s. 4 | | 77 of 2006 | | 21 Dec 2006 | | 1 Feb 2007 (see s. 2(1) and *Gazette* 19 Jan 2007 p. 137) | |\n| *Statutes (Repeals and Miscellaneous Amendments) Act 2009* s. 30 | | 8 of 2009 | | 21 May 2009 | | 22 May 2009 (see s. 2(b)) | |\n| *Acts Amendment (Fair Trading) Act 2010* s.  186 | | 58 of 2010 | | 8 Dec 2010 | | 1 Jan 2011 (see s. 2(c) and *Gazette* 24 Dec 2010 p. 6805) | |\n| **Reprint 3: The *Chattel Securities Act 1987* as at 23 Sep 2011** (includes amendments listed above) | | | | | | | |\n| *Personal Property Securities (Consequential Repeals and Amendments) Act 2011* Pt. 4 Div. 2 | | 42 of 2011 | | 4 Oct 2011 | | 5 Oct 2011 (see s. 2(b)) | |\n| *Road Traffic Legislation Amendment Act 2012* Pt. 4 Div. 5 | | 8 of 2012 | | 21 May 2012 | | 27 Apr 2015 (see s. 2(d) and *Gazette* 17 Apr 2015 p. 1371) | |\n\n\n2 The provision in this Act amending the *Consumer Affairs Act 1971* has been omitted under the *Reprints Act 1984* s. 7(4)(e).\n\n3 The *State Administrative Tribunal (Conferral of Jurisdiction) Amendment and Repeal Act 2004* Pt. 5, the *State Administrative Tribunal Act 2004* s. 167 and 169, and the *State Administrative Tribunal Regulations 2004* r. 28 and 42 deal with certain transitional issues some of which may be relevant to this Act.\n\nDefined terms\n\n*[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]*\n\n**Defined term Provision(s)**\n\napplicant 23(1)\n\napproved form 3(1)\n\ncommercial vehicle 3(1)\n\nCommissioner 3(1)\n\ndealer 3(1)\n\ndebtor 3(1)\n\nDepartment 3(1)\n\nentries 23(4)\n\nexecutive officer 3A(3)\n\nfarm machinery 3(1)\n\ngoods 3(1)\n\nhire‑purchase agreement 3(1)\n\nhirer 3(1)\n\ninformation 30B(3)\n\ninventory security interest 3(1)\n\nlease 3(1)\n\nlessee 3(1)\n\nlessor 3(1)\n\nmigration time 3B\n\nowner 3(1)\n\npre‑PPS transition period 3B\n\nprimary provision 3C(1)\n\npurchase 3(1)\n\npurchase price 3(1)\n\npurchaser 3(1)\n\nregister 3(1)\n\nregistered 3(1)\n\nregistrable goods 3(1)\n\nRegistrar 3B\n\nregistration commencement time 3B\n\nregistration function 3B\n\nrelated provision 3C(1)\n\nsecured party 3(1)\n\nsecurity interest 3(1)\n\nsupply 3(1)\n\ntrailer 3(1)\n\nunregistered security interest 3(1)\n\nunregistrable goods 3(1)\n","sortOrder":0}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The legislation has significantly changed scope from its original 1987 intent. Originally designed as a comprehensive state-based system for registering security interests in personal property (particularly vehicles), the 2011 amendments (Part IIA) effectively gutted the Act by switching off most provisions upon the commencement of the federal Personal Property Securities Act 2009. The Act now operates primarily as a transitional mechanism and compensation scheme for legacy registrations, with most active registration functions transferred to the Commonwealth regime. What began as a substantive commercial law has become largely a historical wind-down instrument."},"complexity_factors":["Extensive cross-referencing to other WA Acts (Credit Act 1984, Hire-Purchase Act 1959, Road Traffic Acts, Motor Vehicle Dealers Act 1973, Fair Trading Act 2010) and Commonwealth legislation (Personal Property Securities Act 2009, Corporations Act 2001)","Complex transitional provisions in Part IIA that effectively switch off most of the Act's operation at specific trigger dates related to federal law commencement","Nested conditional logic in section 7 regarding extinguishment of security interests with multiple exceptions and thresholds ($20,000 limits, different rules for commercial vehicles vs other goods)","27 defined terms in section 3(1) plus additional definitions scattered throughout (sections 3A(3), 3B, 23(4), 30B(3))","Deeming provisions that create legal fictions (e.g., section 3(3) deeming hirers to have interests despite not having title; section 3(4) deeming agreements to give value)","Dual operation provisions where the Act applies differently depending on whether goods are situated in WA at attachment or subsequently","Interaction with 'corresponding laws' of other states creating recognition of interstate registrations"],"plain_english_summary":"**What this law does:**\n\nThis is a Western Australian law that deals with **chattel securities** — basically, loans or financing arrangements where someone borrows money using personal property (like cars, trucks, or equipment) as collateral (security). Think of it like a mortgage, but for movable goods instead of houses.\n\n**Key things the law covers:**\n\n*   **Registration system:** It sets up a public register where lenders can record their security interests in certain high-value goods (mainly motor vehicles and trailers). This lets buyers check if a car they're purchasing has money owing on it.\n*   **Protection for buyers:** If someone buys goods (like a car) without knowing about a registered loan, and the loan isn't registered properly, the buyer might get to keep the goods free of the loan — though the original lender might get compensation from the government in some cases.\n*   **Priority rules:** It establishes who gets paid first if multiple people have claims over the same goods — generally, whoever registers their interest first wins, with some exceptions.\n*   **Dealer rules:** Special rules apply to motor vehicle dealers who sell cars that are financed through inventory loans.\n\n**Who it affects:**\n\n*   **Car buyers:** Anyone buying a used car in WA can check the register to see if money is owing.\n*   **Lenders:** Banks and finance companies who lend money secured against vehicles.\n*   **Car dealers:** They have specific obligations to clear finance before selling vehicles.\n\n**Why it matters:**\n\nThis law protects innocent buyers from unknowingly purchasing vehicles that still have finance owing on them. It creates transparency in the second-hand vehicle market. However, **this law is largely obsolete** — it was heavily amended in 2011 to wind down most of its functions when the Commonwealth (federal) **Personal Property Securities Act 2009** came into effect, creating a national system. Now, only limited provisions remain active (mainly for transitional matters and compensation claims)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"No legislative content was available to assess whether the Act's scope changed from its original intent. The URL returned a system error page, not the legislation itself."},"complexity_factors":["The actual legislative text was not retrievable — complexity cannot be properly assessed","The page returned an error/redirect notice rather than legislation content","What little context exists suggests a now largely superseded state-level securities registration scheme"],"plain_english_summary":"## Chattel Securities Act 1987 (WA) — Content Unavailable\n\n**The actual text of this legislation could not be retrieved.** The page hosting the Chattel Securities Act 1987 (Western Australia) is no longer available at the requested URL due to system upgrades on the WA legislation website.\n\n### What is generally known about this Act:\nThe Chattel Securities Act 1987 was a Western Australian law that dealt with **security interests over personal property** (\"chattels\" — meaning moveable physical assets like vehicles, equipment, and goods, as opposed to land). It governed how lenders could register a legal claim over someone's personal property as security for a loan or debt.\n\n**Note:** This Act has largely been superseded at the national level by the **Personal Property Securities Act 2009 (Cth)** (Commonwealth), which created a single national register for security interests over personal property across Australia, replacing a patchwork of state-based laws like this one.\n\n### To find the current text:\n- Visit [legislation.wa.gov.au](https://www.legislation.wa.gov.au) and search via the menu\n- Contact the Parliamentary Counsel's Office Helpdesk as suggested on the page"},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The Act’s operational scope has been explicitly limited by transitional provisions tied to the Commonwealth Personal Property Securities (PPS) system. Part IIA provides that, at and after the PPS registration commencement time, most of the Act ceases to have effect except for specified provisions and related provisions required for their continued operation (s 3C). The Commissioner may refuse to exercise registration functions during the pre‑PPS transition period (s 3D) and can provide the Commonwealth Registrar with show‑cause notices in certain cases (s 3E). The Act also contains an expiry mechanism allowing the Minister to declare the Act expired when it is no longer needed (s 3G). These provisions materially change the long‑term scope by moving registration functions away from the state register toward the Commonwealth PPS framework (ss 3B–3G)."},"complexity_factors":["Multiple interlocking rules on attachment, extinguishment and priority (ss 3(4), 7, 9, 10).","Separate regime for registrable goods with a Commissioner‑kept register and administrative procedures (ss 13–15, 20–23).","Strict short time limits and procedural requirements (eg. 14‑day show cause and cancellation time frames — s 22; 14 days to apply for cancellation after discharge — s 18).","Overlap and interaction with other statutes and external 'corresponding laws' (s 3(8), s 11) and the Commonwealth PPS framework (Part IIA: ss 3B–3G).","Multiple penalty and compensation regimes with caps and defences (ss 16, 18, 24–25).","Commissioner discretion to refuse functions, cancel entries, determine compensation and delegate powers (ss 3D, 22, 24, 30A).","Confidentiality and liability protections that affect evidence and enforcement (ss 30B, 30C).","Regulations and prescribed forms/fees referenced throughout impose subordinate complexity (eg. ss 15(2), 15(4), 20(3), 23(2))."],"plain_english_summary":"### What this law does, in plain terms\n\nThis Act sets rules for security interests over most movable goods (called \"chattels\") in Western Australia and creates a state register for certain vehicles and trailers. It explains how security interests are created, how they can be defeated by a later buyer, how priorities between competing security interests are determined, and how the Commissioner administers a register for specified goods (notably motor vehicles, trailers and other goods prescribed by regulation) (ss 3, 13, 14).\n\nMechanically, the main steps are:\n- Which goods are covered: the Act defines \"goods\", and specifies which goods are \"registrable\" (motor vehicles and trailers as defined, and prescribed goods) (ss 3, 13).\n- Register and registration: the Commissioner keeps a register of security interests in registrable goods. A holder of a security interest may apply in an approved form to register their interest and pay any prescribed fee; the Commissioner records the entry with date and time (ss 14, 15(1)–(4)).\n- Priority and extinguishment rules: unregistered security interests can be extinguished if a purchaser buys in good faith for value and without notice from the supplier or someone in possession (ss 7(1)–(2)). Registered interests rank by time of registration (s 10(1)); a secured party taking possession before registration can have priority over a later registered interest (s 10(3)).\n- Rights on fixtures and removal: a secured party may treat goods affixed to land as still removable for enforcement purposes but must repair damage caused by removal; those rights are limited if a third party acquires an interest in the land for value without notice (s 6).\n- Enforcement duties and offences: there are small criminal/penalty provisions for improper registration applications, failure to cancel registrations after discharge, and for dealers supplying goods without procuring discharge of inventory or other security interests (ss 16, 18, 30).\n- Compensation and review: the Commissioner can order compensation where a registered interest is extinguished due to registration errors or where a certificate failed to show an entry; the Commissioner decides compensation amounts subject to caps, and affected persons may seek review by the State Administrative Tribunal (ss 24–26).\n- Administrative safeguards: the Commissioner may delegate functions (s 30A), information obtained in administration is confidential with a high penalty for misuse (s 30B), and persons acting in good faith under the Act are protected from liability in many circumstances (s 30C).\n\nWhy the Act matters (claimed purpose and practical effect)\n\nThe Act aims to provide clear rules for secured lending against movable goods and to reduce transactional uncertainty for buyers and secured parties by using a public register for specified goods (ss 14–15, 23). In practice, registering a security interest creates a recorded priority (s 10), while purchasers who buy in good faith from suppliers can take free of certain unregistered interests (s 7). The Commissioner’s register and certificate service allow buyers and lenders to check for existing encumbrances before transacting (s 23).\n\nTesting the purpose-claim against costs, incentives and trade-offs\n\n- Who pays and who bears administrative costs: applicants pay prescribed fees to register or obtain certificates (ss 15(4), 20(3), 23(2)). The State pays any compensation ordered by the Commissioner from public accounts as required by appropriation (s 29). Secured parties and dealers bear compliance costs (registration applications, cancellations, record-keeping) and potential penalty exposure for non-compliance (ss 15, 18, 30).\n\n- Incentives created: registration grants priority (s 10(1)), so secured parties are incentivised to register registrable goods. Conversely, purchasers are incentivised to obtain certificates or extracts before buying (s 23) to avoid taking subject to unknown interests. Dealers are constrained by duties to discharge inventory security interests and other known or registered interests before supplying goods, under penalty (s 30).\n\n- Compliance burden and timing risks: secured parties must apply to cancel registrations within a short period after discharge (14 days) or face a penalty (s 18). The Commissioner has procedural powers (show-cause notices with 14-day response; s 22(1)) and may cancel registrations where the holder was not entitled or failed to cancel after discharge (s 22). Those deadlines and discretionary steps create timing and administrative risk for holders and purchasers.\n\n- Bureaucratic discretion and implementation risk: the Commissioner has broad exercise and discretionary powers: to enter, vary or cancel register particulars (ss 15, 20, 21), to determine and order compensation (ss 24–25), and to refuse to exercise registration functions during a transitional period tied to migration to the Commonwealth Personal Property Securities (PPS) framework (Part IIA — ss 3B–3D). That transitional arrangement means many registration functions either cease or may be refused during prescribed periods (s 3C–3D), shifting the ultimate registration regime to a Commonwealth Registrar (defined in the PPS Act). The Act also contains an expiry mechanism triggered by ministerial satisfaction (s 3G).\n\n- Caps, recovery and substitution effects: compensation for extinguished security interests is capped at either the secured obligation amount or the value of the goods, whichever is less (s 24(4)). If a seller’s registration was not shown on a certificate supplied under s 23, the Commissioner may award compensation (s 25), but defences exist where the purchaser had notice or deliberately avoided inquiry (s 25(3)). These limits and defences reduce the State’s exposure but leave some loss risk on private parties.\n\n- Effects on private enterprise and contract freedom: the Act recognises party agreement to treat a security interest as a legal interest (s 5), preserving contractual choices. However, state registration and extinguishment-by-purchase rules (ss 7, 10, 15, 23) place public-record and buyer-protection constraints on how secured lending and secondary sales operate. Dealers face duties to clear inventory encumbrances before supply (s 30), which may increase transaction costs and affect business practices in motor vehicle and equipment trade.\n\nConcentrated benefits and diffuse costs\n\n- Concentrated benefits: holders who register early obtain priority (s 10), and purchasers who check the register reduce the risk of taking subject to hidden interests (s 23). These are concentrated benefits to registrants, buyers and lenders.\n\n- Diffuse costs: administrative burdens, fee payments, the risk of extinguishment if registration or cancellation is mishandled, and potential penalties are dispersed across many dealers, secured parties and purchasers (ss 15, 18, 30).\n\nKey behaviour changes the law compels\n\n- Secured parties are incentivised to register registrable goods to secure priority (s 10) and to apply for cancellation promptly after discharge (s 18).\n- Purchasers are incentivised to obtain certificates or extracts from the register before purchasing registrable goods (s 23).\n- Dealers must ensure inventory and other security interests are discharged before supplying goods in the course of business, or face penalties (s 30).\n\nImplementation and transitional considerations\n\n- The Act contains a transitional and winding-down framework tied to the Commonwealth Personal Property Securities (PPS) system: many state registration functions cease at the PPS registration commencement time, the Commissioner may refuse to exercise registration functions during a pre-PPS transition period, and certain sections continue to operate while others become ineffective (Part IIA: ss 3B–3G). This changes the practical operation of the Act over time and shifts registration functions to the Commonwealth Registrar as defined in the PPS Act.\n\nOverall, the Act creates a state-level registration and ruleset for security interests in defined movable goods, with priority and extinguishment rules that allocate risk between secured parties and bona fide purchasers, administrative duties and penalties for dealers and registrants, a Commissioner-led administrative regime with discretion over entries and compensation, and a transitional pathway to a Commonwealth personal property securities system (ss 3C–3D, 14–15, 7, 10, 22, 24–25)."}},"importantCases":[],"_links":{"self":"/api/acts/chattel-securities-act-1987","history":"/api/acts/chattel-securities-act-1987/history","analysis":"/api/acts/chattel-securities-act-1987/analysis","conflicts":"/api/acts/chattel-securities-act-1987/conflicts","importantCases":"/api/acts/chattel-securities-act-1987/important-cases","documents":"/api/acts/chattel-securities-act-1987/documents"}}