32. Perfection where the goods are held by a bailee

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

Subject to the provisions of section 4 of this Act, a security right in goods in the possession of a bailee who has issued a negotiable document of title covering it, is perfected by perfecting a security right in the document, and any security right in such goods otherwise perfected while they are so covered, shall become subject to the perfected security right in such negotiable document of title.

(2)

A security right in collateral in the possession of a person other than the debtor, the debtor’s agent or a bailee referred to in subsection (1), may be perfected by-

(a)

the issuance of a document of title in the name of the secured party;

(b)

the possession on behalf of the secured party; or

(c)

registration.

Read on from s 33

Part V

Priorities

Read on from Part V

Part VI

Registration

Read on from Part VI

Part VII

General Provisions

Read on from Part VII

Part VIII

Repeals and Savings

Read on from Part VIII

Part IX

Interpretation

Read on from Part IX