112Dealing with property subject to circulating security interests

112 Dealing with property subject to circulating security interests

Scope

(1) This section applies if a security interest in property (the secured property) of a body corporate under statutory management:

(a) was a circulating security interest when the interest arose; but

(b) has stopped being a circulating security interest because:

(i) in the case of a PPSA security interest—the property has stopped being a circulating asset; or

(ii) in the case of a security interest that was a floating charge when it arose—the floating charge has since become a fixed or specific charge.

Security interest in circulating asset

(2) Subject to section 113 in the case of a PPSA security interest, the statutory manager may deal with any of the secured property in any way the body corporate could deal with the secured property immediately before it stopped being a circulating asset.

Floating charge

(3) Subject to section 113, if the secured interest was a floating charge when it arose, the statutory manager may deal with any of the secured property as if the security interest were still a floating charge.

Note: Section 113 deals with the disposal of encumbered property by a statutory manager.