Part 2Security over Moveable Property

Chapter 1Pledge

Property encumbered by statutory pledge: effect of transfer by provider

53Acquisition in good faith from seller acting in ordinary course of business

(1)

A purchaser of corporeal property which is encumbered property under a statutory pledge acquires it unencumbered by the statutory pledge, despite the consent mentioned in section 51(2) not having been obtained, if—

(a)

the person from whom the property is acquired is acting in the ordinary course of that person’s business, and

(b)

at the time of acquisition, the purchaser is in good faith.

(2)

For the purposes of subsection (1)(b), a purchaser is not to be taken to be other than in good faith by reason only of the statutory pledge having been registered.