33. Perfection and priority of returned, seized or repossessed goods

Where a debtor sells or leases goods that are subject to a security right, the security right reattaches to the goods, if-

Where a security right in goods reattaches in the circumstances referred to in subsection (1), any question as to-

Where a sale or lease of goods creates an account or chattel paper and the account or chattel paper is transferred to a secured party and the goods are returned or repossessed by the seller or the lessor, the transferee of the account or the chattel paper shall have a security right in such goods.

A security right in goods arising under subsection (3) is perfected if the security right in the account or the chattel paper was also perfected, but becomes unperfected on the expiry of ten days after the return or repossession of the goods, unless the transferee registers a financing statement in respect of the security right or takes possession of the goods, before the expiry of that period.

If a transferee of an account obtains a perfected security right in goods under subsections (3) and (4), for the purpose of determining the transferee’s priority as to the goods, the transferee shall be deemed to have perfected a security right in the goods at the time the transferee’s security right in the account was perfected.

Where a transferee of chattel paper obtains a perfected security right in goods under subsections (3) and (4), then as between-