Section 2
Application of Act
(1)
Subject to subsection (2), this Act applies to —
(a)
liens created by judgment or by operation of the law;
(b)
every transaction that in substance creates security interests, without regard to its form and without regard to the person who has title to the collateral, including —
(i)
conditional sale agreements (including agreements to sell subject to retention of title);
(ii)
hire-purchase agreements;
(iii)
consignments;
(iv)
operating and financial leases; and
(v)
outright assignments of intangibles.
(2)
This Act does not apply to —
(a)
any right of set-off whether or not arising under or from financial contracts governed by netting agreements; or
Secured Transactions 10
(b)
an interest created or provided for by any of the following transactions —
(i)
the creation or transfer of an interest in land;
(ii)
a transfer of a right to payment that arises in connection with an interest in land, including a transfer of rental payments payable under a lease of or licence to occupy land, unless the right to payment is evidenced by an investment security;
(iii)
a transfer of present or future claim to wages, salary, pay, commission or any other compensation for labour or personal services of an employee;
(iv)
an assignment for the general benefit of creditors of the person making the assignment;
(v)
a transfer of an interest or claim in or under a contract of annuity or life policy of insurance or takaful;
(vi)
a transfer of a right to damages in tort not related to commercial activity;
(vii)
(deleted by S 76/2016);
(viii)
a transfer or mortgage in a licence, concession or other personal privilege issued or granted under any other written law for which a security interest is prohibited.