SECURITY ON CHATTELS.

Taranaki Daily News, 30 October 1922, Page 5

SECURITY ON CHATTELS.

THE ACT STRENGTHENED. By Telegraph.—Press Association. Wellington, Oct. 28. The Chattels Transfer Amendment Bill, which was introduced in the House to-day, contains some amendments that have been sought by the auctioneers and the stock and station agents as a result of certain rulings under the existing law. A clause provides that upon the expiry of the time or extended term for registration of an unregistered security over chattels it shall not be effective as against any bona fide purchaser or mortgagee for valuable consideration, or as against any person dealing with th? chattel® as auctioneer, or dealer, or agent in the ordinary course of his business. Section 26 of the Chattels Transfer Act provides that a security over stock shall include the natural increase of the stock and all branded stock depastured on the land meantime in the instrument. The Bill strengthens the security by providing that it shall hold good even if the stock is removed from the land mentioned in the instrument.

Another clause strengthens the security over wool. It provides that if under any registered instrument the grantee shall be entitled to require the granto" to give a security over wool growing or to grow upon the sheep, subject to the instrument then, during the subsistence of the registration of the original instrument, the grantees shall be deemed to possess a lien over the elip in terms of the covenant just as if the instrument of security had actually been executed and registered.