PPSA. Shaw Gidley. Presented by: Graeme Scott, Special Counsel

Similar documents
SECURITY INTERESTS AND THEIR PRIORITIES

SECURED TRANSACTIONS PROFESSOR COLIN MARKS ST. MARY'S UNIVERSITY SCHOOL OF LAW

Rights of a Lender to Exercise Developer/Declarant Rights and Privileges by Foreclosure Deed or Deed in lieu of Foreclosure of a Subdivision

BUYER HANDBOOK. my purpose. I provide high-end service for the Nashville area home buyer.

1 EQUITABLE INTERESTS ARISING BY OPERATION OF LAW Includes resulting trusts, constructive trusts and estoppel

Reclaimed Land A guide for developers applying for an interest in reclaimed land under the Marine and Coastal Area Act 2011

LEGAL BRIEF FORECLOSURE ON RENTAL PROPERTY JANUARY 2016

Subdivisions Made Easy. Subd ivisions. Checklist. By Dyrnphna Boholt

Barnes Walker, Chartered 3119 Manatee Avenue West, Bradenton, Florida Ph: (941) ; F: (941) SORTING OUT SHORT SALES:

Introduction Into Domestic Relations Issues 8/24/2016. Title Abstract Title Examination Title Product Abstracts involving domestic relations:

The Bannister Team Prepared for: Compliments of:

INSPECTION SERVICE AGREEMENT WITH RESPECT TO A CHIEFLY RESIDENTIAL IMMOVABLE SAMPLE

ATEL Investor Services

The Corporation of the City of Stratford

Screening of Residential Land: Questions and Answers

TITLE CHANGE REQUEST CHECKLIST AND INSTRUCTIONS

Assured Shorthold Tenancy Agreement

LEVEL 6 UNIT 17 - CONVEYANCING SUGGESTED ANSWERS JUNE 2011

The Architects Code of Conduct

Workshop Session Stress-Free Securitisation

Implementing the New Lease Accounting Standard

THE PROCESS OF PURCHASE OF A PROPERTY IN SPAIN

Housing Guide

SP62406 SP62406 '" ::- 81.e:. Annexure "A" 1. Definitions and Interpretation. ~ I '" o j"' ~ I. Definitions

Legal Wing - Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Bengaluru 15 th September, 2016 Article 99

TERMINATION OF TENANCIES FOR TENANT DEFAULT RESULTS OF FORFEITURE OF LEASES QUESTIONNAIRE

Real Property Exam Notes

HINDU AMERICAN RELIGIOUS INSTITUTE 301 Steigerwalt Hollow Road, New Cumberland PA (717)

Video Course Evaluation Form. Atty ID number for Pennsylvania: Name of Course You Just Watched

Residence Hall Room Lease & Board Contract,

Lessor Presentation & Disclosure Requirements

TEXAS REAL PROPERTY DISTINCTIONS PROFESSOR ZACHARY KRAMER ARIZONA STATE UNIVERSITY COLLEGE OF LAW

ATEL Investor Services

APB Mission Statement:

SIEMENS General Conditions of PURCHASE of Goods & Services (including Software)

Chapter 6 Acquisition

TENANCY AGREEMENT. (Amended May 2010) This is an Assured Shorthold Tenancy Agreement under the Housing Act 1988 (as amended by the Housing Act 1996).

TENANCY APPLICATION GUIDE TO COMPLETION

Opportunity Description: Assistant Property Manager Location: Office in Menlo Park, CA

Mid-state association of realtors, inc. The Association with the Personal Connection 73 East Main St. Plainville, CT 06062

VENDOR REGISTRATION AND DISCLOSURE STATEMENT AND SMALL, WOMEN-, AND MINORITY-OWNED BUSINESS CERTIFICATION APPLICATION

REAL PROPERTY DISTINCTIONS PROFESSOR JULIA BELIAN UNIVERSITY OF DETROIT MERCY SCHOOL OF LAW

FACT SHEET Residential, Business, and Wind & Solar Resource Leasing on Indian Land Final Rule

Commonwealth of Massachusetts The Trial Court Probate and Family Court Department SEPARATION AGREEMENT (APPLICABLE TO ALL DIVORCES ) Party A.

NORTH CAROLINA REAL PROPERTY DISTINCTIONS PROFESSOR JOSEPH BLOCHER DUKE LAW SCHOOL

ICN Merger Working Group. Effective Remedies. 16 February 2017 Washington DC

Procedure for an Permit Application For a Park Model Home or Mobile Home

MiFID II FAQs. For Advisers, Discretionary Portfolio Managers and Product Providers. Praemium Administration Limited

TO LET. Town Centre Retail Premises. Shop Unit 10, Manchester Chambers, Oldham OL1 1LF.

Board of Regents Meeting November 30-December 1, 2006 Agenda Item #32 Arizona State University EXECTIVE SUMMARY Page 1 of 8

Islington & Shoreditch Housing Association (ISHA) Relationship Breakdown Policy

ACEP-ALE Program TIP SHEET FOR MICHIGAN APPLICANTS

Registrar of Real Property (RoRP) Client Handbook

MANUFACTURED HOUSING. TIB is excited to announce that we are now accepting CONVENTIONAL CONFORMING MANUFACTURED HOUSING Loans

Plenary three: How to calculate and apportion service charges effectively

Membership Fees 2018 Broker

APPLICATION AND PROCEDURES FOR SITE PLAN REVIEW INC. VILLAGE OF BROOKVILLE 18 Horse Hill Road Brookville, NY 11545

W yoming M ultiple L isting S ervice

GRADUATE HOUSING CONTRACTS

Nassau County Department of Planning & Economic Opportunity Nassau Place Yulee, Florida 32097

ABA Staff Analysis: Interim Final Rule Amending Regulation Z: Rules Regarding Appraisal Independence (75 F.R )

Pinnacle Award Rules. [Type the document subtitle] 2018 Event. Pinnacle Award Rules. DeKalb Association of REALTORS

Driving Transparency & Accountability with Real Estate Regulatory Act (RERA)

TORRENS TITLE I: INDEFEASIBILITY AND EXCEPTIONS

Town of Bargersville Application Kit Encroachment Request

Guide For Renters

HOW TO SUCCEED AT YOUR MANAGEMENT AND OCCUPANCY REVIEW (MOR)

URBAN ARTS SPACE 50 W TOWN ST., SUITE 130, COLUMBUS, OH 43215

4 LIHTC ONLY, WITH AT LEAST 8 YEARS OF THE ORIGINAL 15-YEAR IRS COMPLIANCE PERIOD REMAINING (AKA NEW LIHTC)

DRAFT 1. GENERAL INFORMATION 2. APPLICATION INSTRUCTIONS

BUILDING CONSENT INFORMATION

GEORGIA REAL PROPERTY DISTINCTIONS PROFESSOR SAMUEL A. DONALDSON GEORGIA STATE UNIVERSITY COLLEGE OF LAW

APPLICATION DEADLINE PINNACLE AWARDS CELEBRATION THURSDAY JANUARY 17, 2019, 5:00 PM THURSDAY. MARCH 21, 2019 Carlos Hellenic Center Ballroom

Homeowners Guide To Assignment of Mortgage Payments Sales

FEASIBILITY REPORT. For The Issuance of Not to Exceed $3,000,000 Principal ~mount

OFFICE OF THE CITY ATTORNEY

CITY OF TAVARES COMMERCIAL BUILDING PERMIT APPLICATION CHECKLIST

Law 640 Real Estate Trans Kortbeek

Ohio Department of Transportation Testimony to the Judiciary Committee of the Ohio House on House Bill 5 (Eminent Domain)

Introduction. Student Comments. Welcome to Sedley Court. High quality student accommodation

How to Make Auctions of Public Land

!"#!$"%&'()**+"&',-./'

Introduction to the Personal Property Securities Register

T. F. McElroy Temple Association inc.- Building Use Policy

Rental Assistance Demonstration Closing Overview & Checklist: Project Based Voucher (PBV) Conversions

a. the bankrupt remains as the apparent owner of the real estate in the public record when he, she or it is not the owner, or

Staff Report. Andrea Ouse, Director of Community and Economic Development

NON-STANDARD RENTAL PROVISIONS Wiegand Enterprises LLC Campus Community Apartments

BOUNDARY LINE ADJUSTMENT

MASSACHUSETTS CONTRACTS DISTINCTIONS PROFESSOR MICHAEL MCCANN UNIVERSITY OF NEW HAMPSHIRE SCHOOL OF LAW

GOLDEN ISLES ASSOCIATION OF REALTORS 2019 CIRCLE OF EXCELLENCE APPLICATION FORM

RESIDENTIAL BUILDING PERMIT REQUIREMENTS

Greenlane Staff Residence Information o

SAMPLE SELLER PROPERTY QUESTIONNAIRE ADDENDUM

TRUSTS PROFESSOR ZACHARY A. KRAMER ARIZONA STATE UNIVERSITY SANDRA DAY O CONNOR COLLEGE OF LAW

TOWN OF BASHAW. Bylaw A bylaw to regulate the development and use of land and buildings

SHORT TERM RENTAL REGISTRATION APPLICATION. All sections are required to be completed; please apply through portal or print.

TO LET. Town Centre Offices Flexible Terms. First & Second Floor Offices, Manchester Chambers, Oldham OL1 1LF.

1. Lowe s Home Centers, Inc. v. Washington Cty. Bd. of Revision, 2016-Ohio-372 (February 4, 2016)

Representative Alissa Keny-Guyer, Chair House Committee on Human Services and Housing Oregon State Legislature 900 Court Street Salem, OR 97301

Transcription:

Hall & Wilcx

PPSA Shaw Gidley Presentatin t: Guests f Shaw Gidley Presented by: Graeme Sctt, Special Cunsel Hall & Wilcx 2

T have a valid security interest The security interest must attach t the cllateral (s19) The grantr must have rights in the cllateral, r pwer t transfer rights, and value given r act dne Grantr deemed t have rights in gds that are leased r bailed under PPS Lease Must be a security agreement (s20) In writing Grants r prvides fr a security interest Signed r adpted by grantr Hall & Wilcx 7064003_2 3

Perfectin The creditr s rights must be perfected (s20) Registratin n PPSR Pssessin Cntrl Nt repssessin/seizure limited applicatin t sme financial instruments, including bank accunts Hall & Wilcx 7064003_2 4

Prceeds Prceeds f cllateral means (s31) Prperty that is derived directly r indirectly frm a dealing with the cllateral A right t an insurance payment fr lss r damage t cllateral If cllateral in intellectual prperty, payments under a licence agreement Specific examples Harvested prduce f crps Prducts f livestck If a dealing with cllateral gives rise t prceeds, the security interest (s32) Cntinues in the cllateral unless the secured party authrised the dispsal r agreed wuld extinguish the security interest Attaches t the prceeds Hall & Wilcx 7064003_2 5

PMSIs Purchase mney security interest (s14) Secures all r part f purchase price r value give t acquire rights in cllateral Asset finance ROT Interest in a PPS Lease Certain leases and bailments Interest under a cmmercial cnsignment Hall & Wilcx 7064003_2 6

Pririty f Security Interests The PPSA reslves the pririty f cmpeting claims f secured parties in cllateral (ss55-77) Generally:- earliest registered security interest takes pririty but, PMSI s have super pririty security interest perfected by cntrl and pssessin have pririty ver perfected security interests unperfected security interest is defeated by perfected interests cmpeting unperfected interests first in time prevails Hall & Wilcx 7064003_2 7

Pririty f Security Interests Security interest created by Cmmnwealth, State r Territry law r by peratin f law has pririty ver ther security interests in the same cllateral (s73) eg, Warehuseman s Liens Act 1935 (NSW). Security interest must be cntinuusly perfected t retain pririty (s56) Factring debts Factr giving new value in an accunt (as riginal cllateral) has pririty ver hlder f PMSI in same cllateral (eg, supplier under ROT) if registered first in time, r ntice within prescribed time (s62) Subrdinatin agreements are effective accrding t their terms (s61) Hall & Wilcx 7064003_2 8

Vesting f security interest If a creditr des nt perfect its security interest: may vest in grantr upn appintment f administratr / liquidatr / bankruptcy trustee (s267) results in lss f cllateral becme unsecured creditr valid against receiver, but lw pririty ranking Hall & Wilcx 7064003_2 9

Vesting f security interest Certain interests d nt vest (s268) Interests that d nt secure payment r perfrmance f an bligatin and are: PPS lease f serial numbered gds (unless 1+ years r indefinite term) cmmercial cnsignment Transfer f accunt / chattel paper Hall & Wilcx 7064003_2 10

Vesting f security interest s588fl A security interest may vest in a cmpany upn an inslvency event if registered Within 6 mnths f the inslvency event Unless registered within 20 days f the security agreement cming int frce. ie, a green security interest hardens after 6 mnths. s588fl Crpratins Act Des nt apply t deemed security interests Shrt term PPS lease f serial numbered gds Cmmercial cnsignment Transfer f cllateral paper Can apply fr extensin f time t register Must be accident r inadvertence, n prejudice t creditrs Hall & Wilcx 7064003_2 11

Timing f Registratin Effect f failure t cmply:- PMSI may lse high ranking pririty Security interest may vest (subject t exceptins) Hall & Wilcx 7064003_2 12

PPSR PPSR is ntice bard rather than dcument register 7 year registratin = $8; 7 25 year registratin = $40; n end time (indefinite) = $140 Secured party must have reasnable belief that have right t register, that will becme secured party in relatin t cllateral (s151) Financing statement r financing change statement (s153) Verificatin Statement given by Registrar (s156) 24/7 peratin Hall & Wilcx 7064003_2 13

Searching the PPSR Anyne can search Exact match searching system Grantr Serial number Linking t prir registratins Hall & Wilcx 7064003_2 14

Registratin A financing statement cnsists f:- Secured party Grantr Cllateral details Cnsumer/cmmercial May r must be described by serial number Cllateral class - ne per registratin, eg ALLPAP, ALLPAP except, ther gds, mtr vehicle etc Descriptin f prceeds, eg all present and after acquired prperty End time fr registratin Subrdinatin PMSI Other matter, eg Transitinal Hall & Wilcx 7064003_2 15

Cllateral Class Agriculture Aircraft All present and after-acquired prperty All present and after acquired prperty, except Financial prperty Intangible prperty Mtr vehicles include equipment capable f being twed Other gds Water craft Hall & Wilcx 7064003_2 16

PPSR Registratin Certificate Registratin number Transitinal? Start & end dates Part 1 search criteria Grantr details Part 2 registratin details Cllateral details Hall & Wilcx 17

PPSR Registratin Certificate Cllateral type Cllateral class Prceeds descriptin Secured party details Hall & Wilcx 18

PPSR Registratin Certificate Part 3 attachment certificate Hall & Wilcx 19

Examples f Registratins Registratin against multiple classes Security interest ver mtr vehicle (serial numbered gds), parts (ther gds), related cntract rights under a lease (intangible) When t register by serial number Mandatry fr cnsumer gds Legal and practical benefits Prtect against sme taking free rules Prtect high value gds Hall & Wilcx 7064003_2 20

Seriusly misleading defect Registratin ineffective if seriusly misleading (s164) Can a searching party ascertain the existence f a security interest ver the cllateral? Ptential defects Incrrect cllateral descriptin r cllateral class PMSI nt described as PMSI Cllateral nt described as inventry if sld/leased as inventry Overreaching registratins Hall & Wilcx 7064003_2 21

Statutry defects Registratin ineffective if statutry defect (s165) N r incrrect serial number fr cnsumer prperty - aircraft, intangible prperty, mtr vehicles and water craft cmmercial prperty - aircraft Grantr s details incrrect ABN (eg, crprate trustee), ACN (cmpany), grantr s name (individual) Nn-PMSI described as PMSI Nn-Transitinal security interest claimed as Transitinal security interest Hall & Wilcx 7064003_2 22

Enfrcement T enfrce security interest, must have effective registratin which cvers the cllateral (s163) Parties rights in PPSA in additinal t thse in security agreement Must be exercised hnestly and in a cmmercially reasnable manner Des nt apply t receivers and cntrllers Rights t seize, retain gds, garnishee accunts Obligatins t higher security interests Hall & Wilcx 7064003_2 23

What t d in a pririty dispute Search PPSR Request cpy f secured agreement Des security agreement create r prvide fr security interest and cver the cllateral? Battle f the frms Check registratin carefully Des registratin cver cllateral? Defects? Hall & Wilcx 7064003_2 24

Taking Free A third party takes cllateral subject t security interests unless taking free prvisins apply Taking free rules Unperfected interests (s43) Serial numbered defects (s44) Mtr vehicles (s45) Ordinary curse f business (s46) Persnal, dmestic and husehld gds (s47) If taking free prvisins apply, secured party may retain interest in prceeds and rights as against grantr (s32) Hall & Wilcx 7064003_2 25

Taking Free Mtr Vehicles (s45) A buyer r lessee, fr new value takes a mtr vehicle free f a security interest if a search f the PPSR (during the perid between the start f the previus day and the date f the sale r lease) wuld nt disclse the registratin Ordinary Curse f Business (s46) A buyer r lessee takes persnal prperty free f a security interest if sld r leased in the rdinary curse f business Rules d nt apply if mtr vehicle/persnal prperty is held by buyer r lessee as inventry Hall & Wilcx 7064003_2 26

Lessns learned When in dubt, register and register ften Eg, des the supply f equipment fr the purpse f prviding a service create a bailment (which is a PPS Lease)? Avid the argument with liquidatr One prperly wrded registratin can perfect multiple security interests in the same cllateral class Update trading terms (including invice / statements) Include bligatin fr custmer t register their wn security interests Dcument inter-cmpany arrangements Risk vesting f asset-hlding cmpany interests r lss f pririty If taking a guarantee, crrect registratin f primary security crucial May invalidate guarantee if supplier agreed t take security interest Hall & Wilcx 7064003_2 27

Lessns learned Search the register regularly t cnfirm that interests recrded against the client are accurate $4 search fee Prcess f remval f incrrect registratins Appint PPSA cmpliance fficer Maintain a register diarise registratin end dates, change in cllateral etc Hall & Wilcx 7064003_2 28

Lessns learned Mst cmmn issue Retentin f title claims Simple r all mneys Cnsider battle f the frms PMSI fr unpaid gds When were gds/equipment supplied? Still need t identify unpaid gds Nn-PMSI fr gds which have been paid fr May be lwer ranking pririty Can claim prceeds, even if nt cvered by security agreement Hall & Wilcx 7064003_2 29

Lessns learned In a vluntary administratin r liquidatin, there are cmmercial imperatives time cnstraints mixed with: uncertainty f PPSA little jurisprudence = negtiate cmmercial utcmes Hall & Wilcx 7064003_2 30

Defence t unfair preference Retentin f title security interest prvides ptential defence t recvery f vidable preference by liquidatr (s588fa and s51 Crpratins Act) Payment f unsecured debt in 6 mnths prir t winding up may be vid against liquidatr What is amunt f secured debt? Unsecured t extent nt reflected in value f security Running accunt Hall & Wilcx 7064003_2 31

PPSA Cases 1. Failure t register PPS lease resulted equipment vesting in cmpany. Receiver had superir claim t wner : Maiden Civil, NSW Sup Crt (June 2013) 2. Befre the Curts: Frge Grup v APR Energy, $50m turbines leased t Frge Grup, PPS Lease but nt registered. Outcme? 3. Extensins f time t register security interests inadvertence, n prejudice t creditrs: Barclays Bank; Cardinia, Black Opal 4. Strage f rare cins. N PPS Lease because n bailment r cmmercial cnsignment. Depsitrs nt in business f bailing gds: Re Arcabi Pty Ltd, WA Sup Crt (2014) 5. Registratin f security interest 20+ days after security agreement, vesting f security interest: Carrafa & Anr v Dka Frmwrk, Vic Sup Ct (Nv 2014) Hall & Wilcx 7064003_2 32

PPSA Cases 6. Transitinal security agreement did nt cntain ROT giving rise t security interest. N security interest. Central Cleaning Supplies v Elkertn, Vic Sup Crt (2014) 7. Payment int curt under rder nt a security interest: Dura (Australia) Cnstructins Pty Ltd v Hue Butique Living, VSCA (2014) Obiter payment held as security depsit may give rise t security interest eg, tenant s security depsit? Hall & Wilcx 7064003_2 33

Case Study Dzer s R Us Pty Ltd 6 mnth hire agreement Dynamic Rentals Pty Ltd $100,000 lan Bank Limited All Steel Supplies Pty Ltd All mneys ROT $20,000 lan Dzer s R Us Pty Ltd Last Resrt Pty Ltd Hall & Wilcx 7064003_2 34

Case Study - Scenari 1 Last Resrt Pty Ltd GSA dated 31 March 2015 expressed t secures all advances Registered ALLPAP security interest n 1 April 2015 Bank Limited GSA dated 1 March 2015 Junir lawyer left GSA in T D tray, fund it after a mnth and registered ALLPAP immediately n 2 April 2015 Dynamic Rentals Pty Ltd Registered n PPSR against Dzer s R Us within 10 days after enter security agreement/pssessin, but nt serial number All Steel Supplies Pty Ltd Registered PMSI befre delivered stck, but n separate nn-pmsi Prceeds Hall & Wilcx 7064003_2 35

Case Study Scenari 1 Dzer s R Us Pty Ltd Manufactured 10 bulldzers and sld 5 t Jims Farming Pty Ltd Paid All Steel Supplies fr half f steel delivered Brrwed additinal $20,000 frm Last Resrt Pty Ltd n 1 May 2015 Bank Limited appints Receiver and Manager n 1 June 2015 Members reslve t wind up n 1 July 2015 Hlds frklift as P&E, nt inventry Hall & Wilcx 7064003_2 36

Case Study Scenari 1 Dynamic Rentals Written hire agreement Bulldzer is mtr vehicle, serial numbered gd Deemed security interest - PPS lease s13(1)(e) Must register within 15 days f taking pssessin fr PMSI All Steel Supplies Credit applicatin dated 1 January 2011 with T&C s Term that title des nt pass until all mneys paid in full ROT is in cnditinal sale agreement (s12(2)(d)) Must register security interest befre delivered stck Hall & Wilcx 7064003_2 37

Case Study Scenari 1 Dynamic Rentals Registered within time frame, s PMSI super pririty Higher (super) pririty ver Last Resrt Pty Ltd Right t retake pssessin f frklift All Steel Supplies Must be recrded as transitinal Registered befre delivery, s PMSI Pririty fr steel nt paid fr and traceable prceeds f sale f bulldzers Steel cmmingled with ther gds t make bulldzers - Rights in bulldzers in pssessin f Dzer s R Us Pty Ltd N security interest in steel paid fr Hall & Wilcx 7064003_2 38

Case Study Scenari 1 Bank Limited GSA nt registered within 20 day f security agreement and registered later than 6 mnths befre liquidatr appinted Security interest vests: s588fl Bank has n security. T late t apply fr extensin Hand cntrl f cmpany t Liquidatr Last Resrt Pty Ltd GSA registered within prescribed timeframes Valid security interest ver all persnal prperty fr all advances Hall & Wilcx 7064003_2 39

Case Study - Scenari 2 Dynamic Rentals Pty Ltd entered int an pen-ended hire agreement with Dzers R Us Pty Ltd and did nt register security interest On 15 May 2015, Dzer s R Us sld the frklift t Sctt s Tyre Factry Pty Ltd Held by Sctt s Tyre Factry Pty Ltd as equipment Sctt s perfrmed PPSR search n frklift with nil result Sctt s Tyre Factry Pty Ltd has granted a GSA t its wn bankers Dynamic Rentals Pty Ltd fund ut abut the sale f its frklift and recrded a security interest against Sctt s Tyre Factry Pty Ltd as grantr. On 1 May 2015, Dzer s R Us Pty Ltd enters factring agreement with Indebted 2U Pty Ltd Indebted 2U Pty Ltd registers a security interest and gives the prescribed ntice (s64) t All Steel Supplies Pty Ltd and Last Resrt Pty Ltd Hall & Wilcx 7064003_2 40

Case Study - Scenari 2 Sctt s Tyre Factry Transfer f cllateral withut cnsent f Dynamic Rentals Pty Ltd Security interest cntinues in cllateral, subject t taking free rules Purchased fr new value. Takes the frklift free f the security interest held by Dynamic Rentals Wuld nt have therwise satisfied rdinary curse f business rule Can issue an Amendment Demand n Dynamic Rentals fr remval f security interest Dynamic Rentals Pty Ltd PPS Lease, indefinite term Security interest vests upn liquidatin Nt saved by s268, because nt shrt term PPS Lease f serial numbered gds under s13(1)(e)-(g) Hall & Wilcx 7064003_2 41

Case Study - Scenari 2 Dynamic Rentals Pty Ltd (cnt d) Lses frklift and right t prceeds f sale What if Dynamic Rentals had registered a security interest by the serial number f the frklift? - Sctt s Tyre Factry wuld nt take free - Dynamic Rentals wuld have 5 business days t re-perfect - Otherwise, becmes unperfected; lses pririty t secured creditr f Indebted 2U Pty Ltd Sctt s Tyre Factry hlding GSA Has pririty ver All Steel Supplies and Last Resrt Pty Ltd fr accunts after 16 May 2015 Hall & Wilcx 7064003_2 42

Case Study Scenari 2 All Steel Supplies Pty Ltd Pririty ver ther security interests fr - steel which is identifiable and which is nt paid fr - any traceable prceeds nt subject t security f Indebted 2U Pty Ltd Hall & Wilcx 7064003_2 43

Cntact us Graeme Sctt, Special Cunsel Cmmercial Dispute Reslutin Phne +61 3 9603 3475 graeme.sctt@hallandwilcx.cm.au Hall & Wilcx 44

Thank yu. 7064003_2 45