ACT
(Act 22 of 2022 and Statutory Instrument 137/2023)
Act 22 of 2022 .. in force 29 November 2023 (S.I. 137/2023)
ARRANGEMENT OF SECTIONS
PRELIMINARY
| 1. | Short title and commencement |
| 2. | Interpretation |
| 3. | Application and non-application of this Act |
| 4. | Conflict of laws |
PART I
CREATION OF A SECURITY INTEREST
| 5. | Security interest |
| 6. | Creation of a security interest |
| 7. | Obligations that may be secured |
| 8. | Movable property that may be encumbered |
| 9. | Requirements for security agreement |
| 10. | Description of encumbered property in security agreement |
| 11. | Security interest in identifiable proceeds |
| 12. | Security interest in goods commingled in a mass or product |
| 13. | Security interest in trade receivables |
| 14. | Security interest in receivables, other intangible property or negotiable instruments |
| 15. | Security interest in funds credited to a deposit account |
| 16. | Security interest in goods covered by a document of title |
| 17. | Security interest in goods used in intellectual property |
| 18. | Exemption of stamp duty on a security agreement |
PART II
THIRD-PARTY EFFECTIVENESS OF A SECURITY INTEREST
| 19. | Third-party effectiveness of a security interest in encumbered property |
| 20. | Third-party effectiveness of a security interest in tangible property by possession |
| 21. | Third-party effectiveness of a security interest in proceeds |
| 22. | Third-party effectiveness of a security interest in a mass or product to which the security interest extends |
| 23. | Making a security interest effective against a third party by different methods |
| 24. | Lapse and re-establishment of third-party effectiveness |
| 25. | Third-party effectiveness on a change of the applicable law |
| 26. | Third-party effectiveness of an acquisition security interest in consumer goods |
| 27. | Third-party effectiveness of a security interest in funds credited to a deposit account |
| 28. | Third-party effectiveness of a security interest in goods covered by a document of title |
PART III
REGISTRATION OF A SECURITY INTEREST IN MOVABLE PROPERTY
DIVISION 1
Registration
| 29. | Registration of an initial notice |
| 30. | Registration of an amendment notice |
| 31. | Registration of a cancellation notice |
| 32. | Registration of an amendment notice to change the name of the secured creditor |
| 33. | Authorization by the grantor |
| 34. | Registered notice dealing with one or multiple security agreements |
| 35. | Registration of an initial notice before creation of a security interest |
| 36. | Description of encumbered property in an initial notice or amendment notice |
| 37. | Identifier of grantor |
| 38. | Identifier of secured creditor |
| 39. | Period of effectiveness and extension of period of effectiveness |
| 40. | Mandatory registration of an amendment notice or a cancellation notice |
| 41. | Errors in required information |
| 42. | Post-registration change of identifier of grantor |
| 43. | Post-registration transfer of an encumbered property |
DIVISION 2
Establishment of a Register of Security Interests in Movable Property
| 44. | Establishment of a Register of Security Interests in Movable Property |
| 45. | Functions of the Registrar of the High Court |
| 46. | Powers of the Registrar of the High Court |
| 47. | Delegation of functions and powers |
| 48. | Maintenance of the Register |
| 49. | Public inspection and search of the Register |
| 50. | Integrity of information |
| 51. | Removal of information from the Register and archive information |
PART IV
PRIORITY OF A SECURITY INTEREST AS AGAINST COMPETING CLAIMANTS
| 52. | Priority amongst competing security interests created by the same grantor |
| 53. | Priority amongst competing security interests created by different grantors |
| 54. | Priority not affected by a change by which a security interest is effective against a third-party |
| 55. | Priority when one or both security interests is in proceeds |
| 56. | Priority of security interests in tangible property commingled in a mass or transformed in a product |
| 57. | Priority of the rights of a buyer or other transferee, lessee or licensee of encumbered property |
| 58. | Rights of a judgement creditor |
| 59. | Priority of an acquisition security interest |
| 60. | Priority amongst competing acquisition security interests |
| 61. | Acquisition security interests and the rights of a judgement creditor |
| 62. | Security interests in proceeds of movable property subject to an acquisition security interest |
| 63. | Acquisition security interest extending to a mass or product |
| 64. | Subordination |
| 65. | Priority with respect to future advances and future encumbered assets |
| 66. | Knowledge of existence of a security interest |
| 67. | Priority of a security interest in a negotiable instrument |
| 68. | Priority of a security interest in funds credited to a deposit account |
| 69. | Possession of money subject to a security interest |
| 70. | Priority of a security interest in tangible property covered by a document of title |
| 71. | Priority of a security interest in non-intermediated securities |
PART V
RIGHTS AND OBLIGATIONS OF THE GRANTOR, SECURED CREDITOR AND A THIRD-PARTY
| 72. | Obligations of grantor and secured creditor |
| 73. | Grantor and secured creditor in possession to exercise reasonable care |
| 74. | Termination of security interest |
| 75. | Inspection of encumbered property |
| 76. | Secured creditor to provide information on request |
| 77. | Representations of grantor of security interest in receivables |
| 78. | Notification of security interest to debtor of receivables |
| 79. | Right of secured creditor to payment made with respect to receivables |
| 80. | Debtor not affected by creation of a security interest in receivables |
| 81. | Effectiveness of notification of a security interest in receivables |
| 82. | Discharge of a debtor of receivables |
| 83. | Defences and rights of set-off of a debtor of receivables |
| 84. | Agreement not to raise defences or rights of set-off |
| 85. | Modification of agreement giving rise to receivables |
| 86. | No recovery from secured creditor |
| 87. | Security interest in a negotiable instrument |
| 88. | Rights as against a financial institution |
| 89. | Rights as against an issuer of a document of title |
PART VI
ENFORCEMENT OF A SECURITY INTEREST
| 90. | Rights exercisable after default |
| 91. | Exercise of rights after default |
| 92. | Relief for non-compliance |
| 93. | Termination of enforcement and redemption of encumbered property |
| 94. | Secured creditor with priority to take over enforcement |
| 95. | Right of secured creditor to possession of encumbered property after default |
| 96. | Disposal of encumbered property |
| 97. | Distribution of proceeds of encumbered property |
| 98. | Proposal to acquire encumbered property in satisfaction of secured obligation |
| 99. | Rights acquired on disposition of encumbered property |
| 100. | Collection of payment by secured creditor |
| 101. | Collection of receivables by transferee of receivables |
| 102. | Priority and enforcement as against securities |
PART VII
APPLICABLE LAW
| 103. | Interpretation of this Part |
| 104. | Choice of law by grantor and secured creditor |
| 105. | Law applicable to a security interest in tangible property |
| 106. | Law applicable to a security interest in intangible property |
| 107. | Law applicable to a security interest in receivables relating to immovable property |
| 108. | Law applicable to enforcement of a security interest |
| 109. | Law applicable to a security interest in proceeds |
| 110. | Application of laws of Saint Lucia on grounds of public policy |
| 111. | Effect of commencement of insolvency proceedings |
| 112. | Law applicable to debtor, obligor, issuer and secured creditor |
| 113. | Law applicable to a security interest in funds credited to a deposit account |
| 114. | Law applicable to third-party effectiveness of a security interest in certain types of movable property by registration |
| 115. | Law applicable to a security interest in intellectual property rights |
| 116. | Law applicable to a security interest in non-intermediated securities |
PART VIII
MISCELLANEOUS
| 117. | Duty to act in good faith |
| 118. | Regulations |
| 119. | Repeal |
| 120. | Savings |
| 121. | Transitional |
AN ACT to provide for the use of movable property as collateral for credit; the creation of a security interest in movable property and third-party effectiveness of a security interest; the establishment of an online Register of Security Interests in Movable Property and for the registration of a security interest in movable property; the rules for determining priority of a security interest as against competing claimants; the rights and obligations of a grantor, secured creditor and third-party obligor; the enforcement of a security interest, applicable laws and for related matters.
Commencement [29 November 2023]