Section 3

the payment of money, the provision of credit or the giving of value; and

includes any liability of the debtor to pay interest, credit costs and other charges or costs payable by the debtor in connection with an advance or the enforcement of a security interest securing the advance;

“after-acquired property” means personal property that is acquired by a debtor after the security agreement is made;

“cash proceeds” means proceeds in the form of money, cheques, drafts or deposit accounts in banks or similar institutions;

“chattel paper” means one or more writings that evidence both a monetary obligation and a security interest in, or lease of, specific goods or specific goods and accessions;

“collateral” means personal property that is subject to a security interest;

“control”, in relation to deposit and securities accounts, exists —

automatically on the creation of security interest if bank or other financial institution that maintains the deposit or securities accounts is the secured creditor; or

if the bank or other financial institution has concluded a control agreement with a debtor and secured party.

“commercial consignment” means a consignment where —

a consignor has reserved an interest in goods that the consignor has delivered to the consignee for the purpose of sale, lease or other disposition; and

both the consignor and the consignee deal in the ordinary course of business in goods of that description, but does not include an agreement under which goods are delivered to an auctioneer for the purpose of sale;

“consumer goods” means goods that are used or acquired for use primarily for personal, domestic or household purpose;

“crops” means crops and plants, whether grown, growing or yet to be planted, attached to land by roots or forming part of trees,

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but does not include trees, unless the trees are grown for commercial purposes and sale;

“debtor”—

means a person that has an interest in a collateral, and includes —

a person who owes payment or performance of an obligation secured, whether or not that person owns or has other rights in the collateral;

a transferee of or successor to the interest of a person referred to in sub-paragraphs (i) to (iv);

or

the person who owns or has other rights in the collateral, where the term debtor is used in a provision of this Act dealing with the collateral;

the obligor, where the term debtor is used in a provision of this Act dealing with the obligation; or

both the person who owns or has other rights in the collateral and the obligor (if the context so requires); and

includes a trustee for any of the persons referred to in paragraph (a);

“default” means —

the failure to pay or otherwise perform the obligation secured when due; or

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the occurrence of an event that, under a security agreement, gives a secured party the right to enforce a security interest;

“document of title” means a writing issued by or addressed to a bailee —

that covers goods in the possession of the bailee and are identified or are fungible portions of an identified mass;

and

in which it is stated that the goods identified in it will be delivered to —

a named person, or to a transferee of that person;

a lessee automatically becomes the owner of the goods that is the object of the lease;

the lessee may acquire ownership of the goods by paying no more than a nominal price; or

the goods has no more than a nominal residual value;

“financing change statement” means the data required or authorised by this Act or the regulations to be entered in the register to renew, discharge, or otherwise amend a financing statement;

“financing statement” means forms in writing or their electronic equivalent as provided in the regulations on which information is provided in order to effect, amend, terminate or continue a registration;

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“future advance” means the payment of money, the provision of credit, or the giving of value secured by a security interest, occurring after the security agreement has been concluded, whether or not provided or given under an obligation to do so;

“goods” means tangible personal property and include farm products, inventory, equipment, consumer goods, trees that have been severed, and petroleum or minerals that have been extracted, but does not include chattel paper, document of title, negotiable instrument, investment security or money;

“intangible” means personal property other than goods, chattel paper, documents of title, investment securities, money or negotiable instruments;

“inventory” means goods that are —

held by a person for sale or lease, or that have been leased by the person as lessor;

to be provided or have been provided under a contract for services;

raw materials or work in progress; or

materials used or consumed in a business;

“investment security” means a writing, whether or not it is in the form of a security certificate, that is recognised in a place in which it is issued or dealt with as a warrant, option, share, right to participate, or other interest in property or an enterprise, or that evidences an obligation of the issuer, and that, in the ordinary course of business, is transferred by —

delivery with any necessary endorsement, assignment, or registration in the records of the issuer or agent of the issuer;

an entry in the records of a clearing house or central securities depository;

an entry in the records maintained for that purpose by or on behalf of the issuer; or

an entry in the records maintained for that purpose by or on behalf of the nominee,

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but does not include a writing that evidences a monetary obligation that is secured by an interest in land;

“land” includes all estates and interests, whether freehold or leasehold, in real property;

“Minister” means the Minister of Finance and Economy;

“negotiable instrument” means —

a bill of exchange or promissory note within the meaning of the Bills of Exchange Act (Chapter 172); or

any other writing that evidences a right to payment of money and is of a kind that, in the ordinary course of business, is transferred by delivery with any necessary endorsement, but does not include chattel paper, document of title or investment security;

“operating lease” means a lease, other than a financial lease, for a term of more than one year;

“perfected security interest” means the security interest that has been created and becomes effective against third parties by control, possession, registration or temporarily, as the case may be;

“personal property” includes goods, chattel paper, documents of title, intangibles, investment securities, money and negotiable instruments;

“possession”, in relation to a secured party, means possession of a collateral that is in the actual or apparent possession or control of the debtor or the debtor’s agent;

“proceeds” means identifiable or traceable personal property received as a result of sale, other disposition, collection, lease or licence of the collateral, including proceeds of proceeds, civil and natural fruits, dividends, distributions, insurance or takaful proceeds and claims arising from defects in, damage to or loss of collateral;

“purchase” means taking by sale, lease, discount, assignment, negotiation, mortgage, pledge, lien, issue, reissue, gift or any

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other consensual transaction that creates an interest in personal property;

“purchase money security interest” means —

a security interest taken in collateral by a seller that secures the obligation to pay any unpaid portion of the purchase price of the collateral;

a security interest taken in collateral by a person who gives value for the purpose of enabling the debtor to acquire rights in the collateral, to the extent that the value is applied to acquire those rights;

the interest of a financial lessor or a lessor of goods under a lease for a term of more than one year; or

the interest of a consignor who delivers goods to a consignee under a commercial consignment, but does not include a transaction of sale and lease back to the seller;

“Registrar” means the Registrar of Collateral Registry appointed under section 5 and includes any Deputy Registrar of Collateral

Registry;

“Registry” means the Collateral Registry established by section 6;

“regulations” means the regulations made under this Act;

“secured party” means a person in whose favour a security interest is created, including —

a consignor;

a financial lessor and a lessor who acquired goods under an operating lease;

a transferee of an intangible;

a seller who reserved title to the sold goods; or

a trustee or agent of the person referred to in paragraphs (a) to (d);

“security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;

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“security interest” means a property right in personal property that is created by agreement and secures payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and includes the right of a seller in an instalment sale or a sale with retained title, but it does not include a personal right against a guarantor or other person liable for the payment of the secured obligation;

“value” means any consideration that is sufficient to support a simple contract, and includes an antecedent debt or liability and a binding commitment to provide future value.