Draft Common Frame of Reference:artikel IX.—2.109

Draft Common Frame of Reference

IX. — 2:109 Good faith acquisition of security right in encumbered corporeal asset

Geldend

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

(1)

Where a corporeal asset is encumbered with a security right or another limited proprietary right and the security provider has no right or authority to dispose of the asset free from the third person's limited proprietary right, a secured creditor nevertheless acquires a security right free from that other right, provided that:

(a)

the requirements of paragraph (1)(a) of the preceding Article are met; and

(b)

the secured creditor does not know nor can reasonably be expected to know that the security provider has no right or authority to grant a security right in disregard of the third person's limited proprietary right at the time the security right is to be created.

(2)

For the purposes of paragraph (1)(b), a secured creditor acquiring a security right in the encumbered asset is regarded as knowing that the security provider has no right or authority to grant a security right in the asset in disregard of the existing security right if this right is registered under Chapter 3, Section 3 against the security provider.

(3)

Where the requirements of paragraph (1) are not met but the requirements of the preceding Article are met, the secured creditor obtains a security right in the encumbered assets. The priority between this security right and the prior encumbrance is determined according to the general provisions.

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