Check whether a registered security interest vests because it was registered late
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the security agreement, the registration timestamp and the insolvency dates, list each time in subsection 588FL(2)(b) and whether the registration time is after the latest of them. The tool does not declare that the interest has vested.
- What the lawyer must review
- The lawyer fixes the critical time from subsection (7) and the sections it names, decides whether the interest was perfected only by registration, and decides whether section 588FN or an order under section 588FM changes the result.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the security agreement, the registration timestamp and the insolvency dates, list each time in subsection 588FL(2)(b) and whether the registration time is after the latest of them. The tool does not declare that the interest has vested. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- The section applies if a named insolvency event occurs and the interest is covered by subsection (2). The events include a winding-up order or resolution, an administrator under section 436A, 436B or 436C, a deed of company arrangement, a restructuring practitioner under section 453B, a restructuring plan, and section 842A or Subdivision C of Division 9 of Part 7.3B beginning to apply. An interest that is unperfected at the critical time is the section 267 question, not this one.
- Subsection (2) covers an interest that, at the critical time or when it arises if later, is enforceable against third parties under Australian law and is perfected by registration and by no other means, and whose registration time is after the latest of: 6 months before the critical time; the end of 20 business days after the security agreement came into force, or the critical time, whichever is earlier; the 56-day foreign-agreement limb where it applies; or a later time ordered under section 588FM. Do not treat 20 business days as a safe harbour without working out which time is the latest.
- If subsection (2) is met, subsection (4) vests the interest in the company unless section 588FN leaves it unaffected. Vesting is immediately before the insolvency event if the interest was first enforceable at or before the critical time, and otherwise when it first becomes enforceable. Section 588FN was not opened. Section 588FM was not opened.
- Subsection (7) defines the critical time by reference to sections 513A, 513B, 513C or 513CA, depending on the procedure. Those sections were not opened. The lawyer reads them before fixing the date. Subsection (5) can protect a buyer for new value without the knowledge it describes, and subsection (6) puts the onus on the person asserting that lack of knowledge. Sections 297 and 298 were not opened.
Sources
- Corporations Act 2001 section 588FL · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.