Section 42
Judgment creditor has priority over unperfected security interests
ActIn forceProvision 38 of 87
Section 42
(1)
The interest of a judgment creditor in any collateral shall have priority over any security interest in the same collateral if the security interest is not perfected at the time of execution.
(2)
In this section, “time of execution” means —
(a)
if the collateral is seized by or on behalf of a judgment creditor, the time of seizure; or
(b)
in any other case, the time when a charging order or a garnishee order is served on the person holding some property for or on behalf of the debtor.
Secured Transactions 30