5Meaning of “security interest” in personal property

5 Meaning of “security interest” in personal property

5 Meaning of “security interest” in personal property

(1) In this Act, a security interest in personal property means an interest in relation to personal property provided for by a transaction that, in substance, secures payment or performance of an obligation (without regard to the form of the transaction or the identity of the person who has title to the property).

(2) A security interest in personal property also includes the following interests in relation to personal property, whether or not the transaction concerned, in substance, secures payment or performance of an obligation:

(a) the interest of a transferee under a transfer of a monetary obligation or chattel paper,

(b) the interest of a consignor who delivers goods to a consignee under a consignment,

(c) the interest of a lessor or bailor under a lease or bailment of goods.

(3) A security interest in personal property does not include a licence.

(4) In this section:

chattel paper means one or more writings that evidence both a monetary obligation and a security interest in, or a lease of, specific personal property.

writing includes (but is not limited to) the kinds of things that are included in the definition of writing for the purposes of the tabled text.