CITATION  SASCFC 95
JUDGE/S KOURAKIS CJ, PARKER AND DOYLE JJ
Appeal from Allied
Distribution Finance Pty Ltd v Samwise Holdings Pty Ltd  SASC 163.
Commercial Distribution Finance Pty Ltd provided floorplan finance over
motorbikes to Bill’s Motorcycles. It retained ownership of the motorbikes and
registered a PMSI.
Then, Bill’s Motorcycles granted an all assets security interest to Samwise, which perfected its interest by registration. Then, Allied entered into a floorplan finance agreement with Bill’s Motorcycles, Allied registered a PMSI, and CDC transferred the motorcycles to Allied. Allied claimed its PMSI had priority over Samwise’s interest. The court upheld the finding in the court below, holding that Allied had priority for its PMSI, as it had already perfected its interest by registration at the time Samwise obtained possession of the inventory within the meaning of s62(2)(b)(i): ‘obtains possession of the inventory’ here referred to the time when Samwise obtained possession as grantor of the security interest to Allied, not when it obtained possession simpliciter.
The summary of the pertinent points in this legal case update has been provided by Steve Pemberton, Lawyer and Consultant, as an extract from his digest of PPSA cases.